Exotic Blade

The Exotic Blade is obtained by killing MacLeod right after the goblin airship fight in Chapter 3. Note that you have to kill him where he stands as the weapon will not drop if he is flung off the cliffs. Killing him will also trigger the achievement "There can be only one" where the objective is to kill MacLeod.

Abilities
None

Pros

 * Fast, powerful melee attack: 430 dmg/hit, ~2.5 hits/sec. It can even cut down Tree Spirits with ease.
 * Armor piercing further increases usefulness against armored enemies.

Cons

 * Must be in close melee range to use.

Trivia

 * It's a katana.
 * The Exotic Blade is a reference to the 1986 movie Highlander. In it, the "Highlander" is a member of a group of immortal human demigods who are waging an eternal war against each other in order to win the final "prize" of true humanity by being the last man standing. They can only be killed by severing their heads from their bodies, and the main character MacLeod does this by using his Exotic Blade. Additionally, "There can be only one" is an often spoken phrase in the movie, as well as its tagline.