Alaric was once Thule Ravenclaw's head servant and bodyguard. Thule used his magic to "protect" him from the Plague of Undeath giving him an unlife form. Later Thule gave his head to the Rot Hide gnolls as a plaything. The rest of his body was buried in an unnamed Shallow Grave. After finding him, you put Alaric's Remains in a niche of a Dusty Shelf to hide him from the gnolls.