Fendarma's Lute  

 

This lute is part of the quest, The festival of Nightmares. It drops from the Remains of Fendarma, yellow con to lv 77. The mob drops 6. He is located on the Southwest side of the carnival. Quest gives xp (did not see bar move at lv 77), and faction with the Ladies of the Light. Quest is received from "The Patron of the Arts", who is located just across the bridge, before the carnival grounds.