The PC’s learn that Allum and Jakelt are both agents from their respective lands assigned to watch over the area and the PCs, as well as keeping tabs on them.
Krista sneaks into town during all of this and assaults the PC’s with subtle spells, causing them to be paranoid, overly generous, etc. She then attacks them with 6 assassins, one of which is found to have a map to a castle just east of Dale. Traveling there, the PC’s walk into a trap and are briefly imprisoned. They escape and battle Madon’s troops, led by Borel, and Krista’s golem, as well as Krista, Madon, and Ellis. Hargrim almost dies, but is saved by an herb found by Felkik. Krista, Borel, and some troops escape and Madon and Ellis are killed. At the moment of Madon’s death Orlif attempts to transfer both his and Madon’s souls into Krista’s body, but she is able to resist. He settles for Borel, who easily succumbs.
The PC’s take one of the surviving troops to Beawyn who reads his mind and is able to give the PC’s the location of Cheirosh and Beirosh.