Allaris shows up, demands his sheep. Laughs at the party and their pathetic attempts. Kayl attempts to talk him down, Allaris mentions they have no where to go, that their land was taken. Berates Alveron for not protecting them, that they were once farmers too before their lives were taken. Now they've decided to take what was taken from them, they negotiate up, not down. Meanwhile, Odila Vallos infiltrates the bandit mob and begins throwing her voice to talk them all down.
Turns out, Allaris is actually a Tiefling in disguise, and knows the plight of infernal ancestry. He ridicules Kayl's pacifist nature with his infernal blood. He attacks Kayl and trades a few words, but the party joins in in attacking him. When Bengt Sunwalker attacks him, he shatters Allaris' alter self amulet and the bandit leader is revealed for what he is, this causes the rest of the bandits to question their own motives.
Allaris is beaten, and Captain Frederick loots the body, something which Kayl catches him on and questions him. Frederick tries to divert the line of questioning but Kayl is insistent. They argue and Kayl storms off to contemplate the day.
Odila discovers that the bandits weaponry bears the blacksmith stamps of the Koga smithies.