|Location||Mournhold Outlaws Refuge|
Zagrugh is an Orc member of the group of outlaws refuge. He is found dead inside the Mournhold refuge, next to his journal. From reading the journal, it's apparent that Zagrugh tried to summon a Daedra to assist in running his store but the summoned scamp, Creeper, killed him instead and took over the store.
His body is partially hidden under some mushrooms near the stairway to the south exit.