This quest is given by the skill trainer Hermosa. She tells you of Morgan, a man in Champion Harbour who is in love with her and gave her a necklace. Since she feels her new place is in your battle tower serving you and will not be returning to him, she feels it is best to return the necklace to him. At Champion Harbour inside the building (the door to enter is by the elevator) you will find Morgan walking around on the opposite side of the boats. Talk to him and return the necklace, and he will give you a book to take back to Hermosa that she has been looking for for a long time. Return to Hermosa and give her the book and she will tell you to talk to Sassan to upgrade the skill trainer arena which will allow you to train skills to level 13.