The party discover a secret exit activated by pushing a stone brick suspiciously hidden behind a crooked panting and catch a glimpse of two kobolds fleeing down a dirt tunnel. The party charge after them, capturing them successfully. During an intense interrogation, one of the kobolds manages to say that they had come from Loudwater only to have its head explode shortly after. The other kobold is revealed to be one of the two Shadow Network agents the party was originally contracted to find. He reveals himself as a male elven illusionist named Peren who was captured along with his partner, a Warforged, in the same ruins the party had just navigated. He continues stating that Loudwater is actually composed of lycanthropes who he believes have some connection to the Cult of Khyber. Peren also reveals that he was intentionally bitten and he now contracts lycanthropy but after the party leader tends to his wounds and disease, the mage gains control over the disease.
Peren informs the party that the Warforged is irreplaceable in the Shadow Network and upon the return of its head, the party can redeem a large portion of gold. Along with this promise of reward, Peren convinces the party to return to the village in search of a possible youth dragon whose existence could confirm a connection to the Cult of Khyber and once again result in a gold reward.
The party and Peren decide to sneak into Loudwater and complete the above tasks. They manage to sneak into the town unnoticed and upon reaching the dungeon underneath the town hall, Peren retrieves the head of his comrade. Peren here informs the party that he did see some suspicious items in the mayor’s office and suggest they start looking for clues of a dragon there. However, upon returning to the lobby, they encounter a small band of villagers. Peren conjures and channels a deafening shield preventing noise from escaping the town hall while the party quickly dispatch with the villagers and guards who are revealed to have the ability to transform into werewolves.
The party and Peren then surge forwards, storming the mayor’s assistant’s room wiping out the mayor’s guards. Pushing into the mayor’s office, they encounter the mayor who under the affect of two blue obelisks, transforms into a resilient werewolf. After a long struggle, the party dispatch the mayor and his personal guards. However the success over the werewolves was not without avail: the monk and the fighter were bitten by werewolves and subsequently contracted lycanthropy.