All this parley happens rather quickly in the lashing sand and wind...
Note that if you don't SHOUT OVER THE WIND you won't be heard by anyone more than 10ft away.
The rules remark that players can enlist monsters of the same alignment by regular negotiation which seems to be applicable here. Highbough and the elemental are both neutral, but Highbough's offer is not overtly generous so the reaction check will go unmodified. 2d6=2! The air elemental is hostile (probably owing to it having been trapped in a bottle for the last hundred years)...
The air elemental ignores Highbough's shouted offer and dives directly at Desmond/Mondes, being the very nearest target, attacking as the two-headed Halfling attempts to jump clear of the bow... the powerful punch of air knocks Desmond's sword clear of his grasp and flings him 20ft back, to land in a crouch amid the swirling sandstorm.
Desmond/Mondes was already back-peddling, so we'll presume he is parrying. However, the air-elemental attacks anyone in the air (including jumping) at +2.
The Air Elemental attacks 1d20=8 @-2 (would hit AC 7) but misses Desmond/Mondes (AC 6) by exactly 1 pip. This means his parry has deflected the blow and Desmond is disarmed by the heavier "weapon" in the process.
Now accepting orders for your next combat turn...
[f=32]
Golgildir the Elf Medium (MV 12", AC 9, HD 1, hp 1/1, AL N) great cloak,
lantern; spells: color spray; scrolls: sleep, sleep, charm person
Hirelings: Georges;
torch[/f]