Upon returning to Waterdeep, the party meets again with the Council. After a bit of confusion related to the adventurers' changed appearance, the discussion turns to their recent deeds. The failure to retrieve the green dragon mask is unfortunate, but the good news from Murghôm is very much appreciated. The Council relates several developments since the last meeting. In Waterdeep itself, there have been mysterious disappearances of prominent critics of the cult. In the far north, word has come that Skyreach Castle has crashed. The Red Wizards of Thay have reached out asking for a diplomatic meeting, proposing an alliance against the Red Wizard faction that it helping the Cult. And a possible cult defector has been tracked to Xonthal's Tower, where he promises to help secure one of the dragon masks. The adventurers discuss these options and decide to start with the disappearances in Waterdeep. One of the names of the missing is very familiar - Varcus the mage. They find his rooms but find no clues to his location there. However, visiting a nearby pub proves more useful. They are met by Jamna Gleamsilver, a rogue who had helped before in investigations of the cult. She tells them that the Zhentarim, an organization of thieves and assassins, has been approached with death contracts against the entire party! Not only has the Cult offered rewards for their deaths, but also a priestess of Lolth, a mercenary band hunting Varcus, and several barbarians. Jamna herself wants the party to continue to thwart the plans of the Cult of the Dragon, so she has come to warn them against this threat. To this end, she leads them to a butcher shop that is a front for a Zhentarim cell, then leaves them to infiltrate it. This they do by the simple method of Bron walking in and drawing the attention of the butcher, while Induris sneaks up behind and knocks him out. In the basement they find a heavy barred door, but some quick talking by Induris convinces the Zhentarim members behind it to let the party in. Words don't convince them that the adventurers are friends, though, and eventually battle breaks out. The Zhentarim are subdued, but one escapes into another room. Acting quickly before he returns, the adventurers go down a different passage and soon find a guarded room. The guards are dealt with swiftly, and inside they find a drugged and bound Varcus! Unable to wake him immediately, the cleric hoists him on her back and they head back to the stairs. But their way is blocked by a group of drow! Fortunately these have not had time to prepare for a fight, and a charge from Bron followed by a fireball from George quickly clears the way. The party briefly considers investigating further to see where the drow came from, but after a quick scout from Induris reveals much more dangerous-looking foes, they choose to retreat. Back in the butcher shop, the party walks directly into a group of cultists! They are accompanied by fiends summoned from the Nine Hells, surely work of the Red Wizards in league with the Cult. George takes Varcus to safety as the rest of the party battles their foes. The fight is intense but brief, leaving several cultists dead and ending with the remaining fiend fleeing from their blades. Investigation of the bodies reveals that the Cult has circulated the descriptions of the adventurers widely, offering great rewards to any who defeat them. More such ambushes are likely in the future! But for now, the way is clear, so they return to the estate of the paladin Ontharr Frume to rest and consider their next move. While there, Varcus recovers from his drugged stupor. Since he was last with the party, he has been in hiding from old enemies who have been seeking revenge. The Zhentarim are only the latest in a long line of mercenaries hired to pursue him.