King Khalim's Conundrum

First things first, you'll need to have completed all eight of the game's Chapter 4 stories. Once that's done, head to Marsalim and find King Khalim in his palace. He's looking to bring some new entertainment to his people, specifically a theatre, but he and his advisors are clueless about how to run one. He'll task you with finding some help.

Your next stop is Everhold. Head inside the theatre there. As soon as you enter the first room, look to your right. You'll find the Theater Manager standing there.

Important: Before you do anything else, make sure you steal the Empowering Necklace from the Theater Manager!

Once you've got the necklace, use either the Allure or Guide skill on the Theater Manager.

After successfully recruiting him, escort him back to King Khalim in Marsalim to complete the side story.