The party killed the crocodile.
Clearing out the underground complex resulted in the death of approximately 6 additional thugs, and revealed it to be a ring shaped series of tunnels leading to four different abandoned houses and the well.
Upon exiting the complex, the party encountered three additional thugs. After disabling the third and chasing down the third, the party interrogated them for information. When the thugs complied, the party left them alive, possibly to recruit them later after the party had assumed control of the Lotus Dragon organization.
The thugs revealed information about secret entrances to the underground complex.
After deciding to push further while still possessing the element of surprise, the party encountered Kersh and approximately 6 thugs. A worg, Cruncher, was also encountered.
After killing Kersh, the worg, and approximately four thugs, the remaining thugs surrendered. Interrogation revealed that 6-12 additional hostiles remained, and that Lady Lotus, the head of the Lotus Dragons, has a small pet dragon.
The thugs were left alive in order that they may be recruited later, and may spread word throughout the complex that the party has been captured. Kersh’s severed head has been acquired for intimidation purposes by Grimsdottir.
The party is preparing to advance to the holding cells and has currently depleted almost all of its renewable magical resources.