The Founders discover what happened to the villagers of Varnhold and take steps to ensure such a mass disappearance will not happen again.

Source: No one in particular assigns you this quest but if you ignore the problems in Varnhold, they could very well spread to engulf Sellenmar.

Task: Explore Varnhold, learn the truth of what befell its citizens, and then SECRET #1.

Completion: SECRET #2.

Reward: SECRET #3 plus 4800 XP.

SECRET #1: …and then confront the lich Vordakai in his tomb.

SECRET #2: Slay Vordakai and release as many imprisoned villagers as possible from captivity in the lich’s dungeon of souls.

SECRET #3: With Vordakai’s defeat and the captured villagers released from the dungeon of souls, Varnhold agrees to join Sellenmar.

After an extensive search of an ancient cyclopean tomb deep within the Tors of Levenies, Vordakai was slain by The Founders and their companions on Neth 3, 4714. The survivors were released from being held captive in Vordakai’s foul soul jars on Neth 19, 4714. After conferring with what was left of Varnhold’s Town Council (Jasin Blusk and the enigmatic Samuel), the population of Varnhold pledged their loyalty to the nation of Sellenmar.

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The Rise of Sellenmar dynamohum