The heroes finally leave Sandpoint to return home. On the road they meet a dwarven merchant named Tor, carrying a magical warhammer with inscription “The Town of Nicholson’s Tomb.” He offers the party a special dwarven herb, but when the name Orsulak is mentioned, he quickly bids the heroes good-day and leaves.
A few days later, the heroes are ambushed by a group elves. They appeared to be a part of a lost forgotten band of elves that practiced evil witchcraft. All of the elves wore a golden medallion bearing a symbol of a leaf, and they spoke an ancient elven dialect. The heroes finally defeated the elves, but not before one of the them released (upon command) a beast before escaping. A large “rhino” like beast stormed through the forest trees, gorging Kraken and nearly killing him!
The heroes entered the town of Ironfield, and inside the Bane’s Breath tavern, they were confronted by the town’s general, a young rude human that wnet by the name of Nilus Orsulak III. When he finds out about Jolly’s history, he tells the heroes of his upbringing, and how his uncle raised him. They decided to visit his uncle on the outside of town.