There are a ton of great LED lights on the market today.
Unfortunately, I own way too many of them.
Besides being a tool collector I collect flashlights. I current have around 5000 lights in my collection. An assortment of old and new.
Until recently, my shop was a Surefire distributor. I am a huge Surefire fan but I quit selling them because they have so overpriced themselves and it was hard to compete with the prices the online retailers were selling for. I'll still continue to buy them personally but found it hard to sell over the counter.
Taking suggestions on lights is like taking them on tools or cars. Everyone will have an opinion. So, here is my two cents.
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You have a budget of 40.00 so that rules out Surefire. That's OK because today, there are other fine lights out there.
I suggest a nice small pocket light that your friend can carry every day. Every day carry or EDC for short.
Last Christmas I bought a Fenix E15 for my Dad. My Dad is 74 years old and never carried a light everyday before. I told him to give it a try. He did and says today that he can not believe how much he uses it. Nearly "everyday"!
The Fenix E15 is a well made light, very small, and amazing light output, lifetime warranty.
It is so small you won't notice it in your pocket.
Best of all, it is only about 30.00 which leaves a few dollars to buy your friend some extra batteries.
It takes a CR123 battery which in my opinion is one of the BEST choices for batteries these days. They have amazing run time, work at any temperature, and have GREAT shelf life. Not to mention I have never had one leak and ruin anything they were in like a lot of AA or AAA batteries have.
http://www.amazon.com/Fenix-Flashlights-Flashlight-Upgraded-1-5-Inch/dp/B005CWRB44/ref=sr_1_5?ie=UTF8&qid=1386136172&sr=8-5&keywords=fenix