Can be obtained after you defeat Aric in the training match, at the Volcano Keep. If Bandit, this quest will be unavailable to you, so you are unable to obtain this sword when you first enter the Monastery - even killing him does not work. You can, however, obtain this sword when you help take back the Monastery in the end of Chapter 2/beginning of Chapter 3. It is looted off Aric's corpse in the Kitchen.