While Eskard tries to get his hands on the merchant, a deft stab, drawing a good amount of blood, stops his first attempt. The second is foiled by the merchant's quick sidestep.
While Bazrim tries to protect his own hide, Erdolliel tries to fancifully jab the merchant. She finds only air.
Kushnak climbs atop the bar and heals Tarquin. The gnome finds himself on the floor and looks to be in a state of sheer terror.
The merchant lunges off the bar, swinging, but missing, at Eskard as he darts by.
The members of the crowd affected by Nethezar's spell flee as fast as they can. The rest grab more makeshift weapons and close, including one who leaps over the bar near Tarquin.

[sblock=OOC]Eskard: dodge on M; 5-foot step; grapple attempt
Merchant: AoO, 19+ threat, 12+ crit confirmed; 19 damage
Eskard: grapple attempt automatically fails due to being damaged in AoO; second attempt (no AoO this time); melee touch attack, 6+, miss
Bazrim:
mage armor; moves
Erdolliel: spring attack M while drawing, 13+, miss
Kushnak: moves, gets on bar (you have so much movement left, i'm just gonna allow it);
clw T, 11 hps (Tarquin is conscious and prone)
Merchant: spring attacks S
[I'm going to assume that K doesn't take an AoO with his fists, since that would provoke an AoO.]
Erdolliel: AoO, 17+ miss (mobility pays off for the second time in the history of the world)
Merchant: continues spring attack S, 2+ miss
Crowd: the
confused guys all flee from Neth at max speed (they are effectively gone); remainder all replace their improvised weapons with other mugs, chairs, etc. [I assumed no AoO would be taken against the crowd.]
Status & Init:
Eskard: dodge on M; 19 damage
Bazrim:
mage armor
Erdolliel: dodge on M
Kushnak
Merchant
Nethezar
Crowd:
Oh, and its not funny anymore. The word is "defense."[/sblock]