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1. In the southern part of the Lower Ward you'll find a wrecked building (I'm not sure if it's called exactly that, but at least something like it, you'll know it when you find it). Go inside, and the way to free Morte will present itself.
2. Fall-from-Grace is in the Brothel of Slating Intellectual Lusts, in the Clerk's Ward (not far from the Lower Ward). Talk to her, and you'll eventually have the option to ask her to join you. She'll give you a little task first, but it isn't a very hard one.
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