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Location Battle Tower Interior
From Sassan
Rewards XP & gold
2 additional options

Guide
Right after Breaking an Entry, Sassan will run up to you in the tunnel and tell you that Laiken is soul forged with a Demon. To kill the Demon you need to find out its name. Use the elevator to go down to the morgue. Kill the Abomination Master and it will drop a key needed to open the library door. You can talk to Grimm if you want. Take the elevator up to the 2nd floor and kill the Abominations. The Abomination Master will drop a key needed to unlock the chest in the library.
Note: If you light the two candles on the end tables at each side of the room, the wall in the middle will rise, revealing a chest.

Go down to the 1st floor, enter the library and mindread Erlking. Go to the small bookshelf and select Gothe's Ballads. The wall will rise, revealing two chests. The small one contains the Soul Forge Contract that reveals the demon's name: "Razakel".
If you have unfinished business, now's the time to go back down to the morgue and use the shrine to teleport out of the tower. After you take over the Battle Tower, Damien will siege Sentinel Island and Broken Valley, covering the land with a poisonous gas and killing everyone (except for a couple of characters that are able to hide, like Turgoyn and Doctor Needleman).

Go to the 3rd floor where Sassan is waiting. Entering the chamber with the summoning circle will trigger the doors to lock behind you. First you must kill Sassan the abomination and a few Abomination Masters.
Tip: Mindread Sassan before she summons Razakel to gain one stat point.

Once you're ready tell Sassan to summon Razakel.
Tip: Mindread Razakel before attacking him to learn about the warhammer Barnabus never returned to him: Razakel's Hammer. Mindread Sassan again before going after Laiken to gain another stat point.

The demon will run off, so follow it to the throne room where you'll start the Laiken in his Lair quest.