The second segment of Osvald and Partitio's joint story takes place in Montwise, the setting for Osvald's fourth chapter. In order to trigger this part of the story you need to fulfill two prerequisites:
- You need to complete the first section of their story
- You need to complete the main stories of both Osvald and Partitio
Once this is done you'll trigger the second section of The Scholar & Merchant in Montwise. You can either begin the chapter immediately upon entering town, or hold off and visit the Tavern later. The Tavern is in the small square to the north of Montwise's entrance.
Invited by Osvald's former colleague Regulus to come see his new invention, Osvald and Partitio pay a visit to the massive library in the north of Montwise. After a short argument about coffee they'll need to find his laboratory, which is a quick walk to the northeast of the main desk and up some stairs. Regulus is inside... aaaaand it appears that his telescope has been seized by a moneylender. This man is truly awful with cash.
Head to the mansion to the east of the library. Three Thugs out front are busy gloating over how badly they've conned Regulus. You'll need to take them down, which is not a big deal since they're just regular ol' mooks. Head inside the house they were protecting and you'll need to face down two more Thugs and a Thug Leader, who are no stronger than the first bunch. Once the Thugs are gone Osvald will need to Mug the Moneylender for the Improved Telescope. A few Elemental Barrages will do him in.
Returning the telescope to Regulus will end the chapter, more or less, though Regulus will make some odd observations about the night sky. Ominous. Story complete!