Of course Merrick is there, relaxing near the fire with his trusty pipe when he's not rushing around helping Metaari wherever he can. He plays his guitar and sings off and on, his songs getting more and more boisterous as the night goes on and he imbibes more of his homemade moonshine.
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Said hooch is available for those who want to be knocked on their asses, but he also brings some ale that he says he paid for-- though, for those who know Merrick, that probably isn't true, and it's very wise not to ask.

Most notably, Merrick's entire bearing seems to have changed. Instead of skulking and twitching around anxiously, he seems far more relaxed-- and if the dragon's tooth fragment around his neck is any indication, it should be fairly obvious why.