A noblewoman named Areana hires you in the third floor of the Three Old Kegs to kill her blackmailer, Cyrdemac, in the Elfsong Tavern for 2,000 . She can be charmed for a Bloodstone Gem and 500 without doing the quest. Otherwise if you kill Cyrdemac, she also will only give you 500 despite her earlier quotation.
However, you can additionally choose to blackmail her yourself, earning 500 every two days for a maximum of four days, loosing one Reputation point each time (which is strange, given the secretive nature of blackmailing). If more than ten days pass without collecting, she brings in Tor Lobo to attack the party. Tor Lobo is worth 600 XP and will drop a long sword, a large shield, a plate mail armor and 78 .