Hiya firehorse.
The two NPC warriors were intimidated by Valdir, and combined with the fact that they didn't know ALmedh and Gadreman or what their motive for helping them was, the two warriors fled. Leaving their horses behind.
Argus and Valdir then chased Gadreman, who had picked up the now-stabilized mage and fled, and Gadreman finally set the wizard down and had a standoff with Argus. Argus attacked, missing, while Gadreman's own strike laid Argus low (-3hp). Valdir fled to get help, and Gadreman picked the mage and argus both up.
Finding a nice spot, Gadreman stabilized Argus, and using Argus' healing potion brought him to 0 hp. He then picked them both up again and fled, trying to hide his tracks.
Rolf and Valdir, both accomplished trackers, had no difficulty overtaking Gadreman, who set the wizard down in an alcove and held his sword to Argus' throat.
In exchange for Argus' life, the party that was present agreed to let him go, with the wizard. The party returns to the tavern to meet up with the others.
Fleck was spared by Almedh, and once the wizard was gone, Almedh and the party decided enough was enough and went inside to have a drink.
Gadreman is supposed to return later with the dagger.
Of note, Gadreman saved Argus' life, rather than kill him or even letting him die, and Almedh proved reasonable once the wizard was gone.
The two warriors are long gone, but may return someday.