Various NPC merchants are interested in obtaining certain types of loot. If you bring them items of interest, you are rewarded with EXP.
The items are dropped when you kill the monster. The rate of droppage varies, but can be as low as 1-15. The monster drops the special items in addition to or instead of its regular drop. Usually it is "instead of".
Like any monster drop, these special items can be sold for $$. They do not yield any exceptional amounts, however.
Only the NPC interested in the special loot will give you EXP: You simply hand the item to the NPC (do not sell it, unless all you want is $$). Other NPCs simply refuse to accept the item.
You seem to get somewhere around 1/3 to 1/2 the EXP you get from killing the monster in the first place.
Whether or not a NPC will take the item (giving you EXP) seems to be level dependent: The higher your level, the more NPCs which do this. I do not know if there is any class dependency here.
Obtaining the special items requires only killing the monster: It is therefore possible to get special items which you can not yet turn over to a NPC because you are not of high-enough level. In this case, either save them in your vault until you can trade them in, or simply sell them for $$ like other loot.
One thing: DO NOT STACK THE SPECIAL ITEMS. You give them to the NPC one stack at a time, and get NNN EXP per stack, regardless of how many items are actually in the stack. Sounds like a bug to me, but I have verified that this is the way it works, so be careful.
Unlike "traditional tasks", these have no time limit and do not show up as a task. Hence, for example, they do not interfere with craft consignment tasks.
I have identified the following NPC merchants interested in special items.
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Level 30 Opportunities
Ft Veldon
Merchant Camp Monster Item
Seiml Musip fire ant gatherers fire ant larva
Galpan
Merchant Camp Monster Item
Otkel Skona Ravine WW wardens Warden Ears
Ohar Sknoa Ravine timberland badgers stomachs
Level 40 Opportunities
Galpan
Merchant Camp Monster Item
Nikgor Malmohus Drakulv scales
Thyra Vanern Swamp mud crabs claws
Gudrid Spin terra crabs Terra Crab Claws
Galena Vanern Swamp forest vipers poison
Ysunois Varulvhamn werewolves Lost Pearls
Myden Sknoa Ravine timberland badgers stomachs
Tallya Vanern Swamp black orms glands