Re: OOC Discussions
First, a helpful soul pointed out to me that I may have misread the amount of experience you folks should've received. The example on p.315 notes that each character receives the full award, rather than it being split amongst the party. So, that said, instead of 113XP, you each receive 450XP. Please note that change on your character sheets.
Regarding "trading-in" the armor:
The short answer is, yes, you can attempt to sell your old armor or use it as a barter piece for the purchase of better armor; however, you will not get full price for it...your return value will be closer to a quarter of the original price, although good bargaining (i.e., winning an opposed Communication (Bargaining) test) will increase that incrementally.
Owen in the village is a blacksmith and can make metal armors, but doesn't really specialize in leather armors; there's only a small chance he has one in his inventory.
That said, the arl has an armorer and, well, you now have the arl's favor; the castle armorer may be able to assist you where Owen cannot. Given that the castle armorer has more important work (taking care of the knights and soldiers of the arl's house) to attend, his price will probably be a little higher than normal to finish a special piece, but he will also be more likely to take your old armor as part of the barter. You'll certainly have an opportunity to haggle the value of the old armor as a way to lower your out-of-pocket expense.
If you want to roleplay this out, I'd be happy to do so. If not, I'll set up the appropriate rolls for you & we can get it over with. :)