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Please note that this souvenir is for failing the story arc. Please see "A feathered mantle" for the successful version.
A rebel helmet
This broken helmet once belonged to a member of a group of Arachnos rebels who tried to escape the cold retaliation of the Rogue Isles. Too bad for them that they crossed your path in an escapade you remember simply as
Westin Phipps had heard a rumor going around among the wretches who frequent Haven House that a group of Rebel Arachnos from Warburg had left Marshal Blitz's service and struck out on their own. According to the word on the street, they were now hiding in Grandville, right under Lord Recluse's feet. Phipps had learned a likely location for one of their leaders, and had come up with a plan to catch the rest. First, he sent you in defeat one of the Rebels, a Fortunata named Amelee, and steal her ID. Once that was done, Phipps could have another Fortunata impersonate her to draw out more of the Rebels and learn who was helping them.
It wasn't long before Fortunata Millia's impersonation of the Captured Amelee paid off. She'd learned who was helping the rebels, but needed your help to get out. It turns out that Rebels were getting assistance from Longbow and Swan of the Vindicators in exchange for information on Weaver-1, Arachnos' chief engineer. You got her out with the information all right, but her fate after that sounded grim. Westin Phipps has no qualms about keeping his secrets.
The remaining rebels tried to make a break for it and hid out with Longbow. Too bad for them Phipps knew where to send you. Too bad for you one of them got away. He's out there, somewhere, trying to stir up dissent and rebellion. Or if he's smart, he never stopped running.