Reinhard confides in Hildegard that his memories of Kircheis motivated him towards ceasefire talks. Yang discusses the situation with his staff. The death of Fischer basically cut off the legs from Yang's fleet. Yang decides to accept the ceasefire talks. Yang leaves Iserlohn with minimal military personnel and the politicians from El Facil. Fork's ship finds Yang's ship en route to the Imperial fleet. Behind Fork two Imperial destroyers fire on Fork, killing him. Back on Iserlohn, the crew receives word of an assassination attempt by Fork. The Imperial ships requests a meeting with Yang. The crew behind the ships are in reality Earth Cultists in disguise. Patrichev and many others are killed defending Yang. Schenkopp with his Rosen Ritter arrive on Yang's ship. Yang is shot in the leg.

Schumacher is caught by the Imperial police. Schumacher confesses that he thinks the last of the Earth cultists have landed on Phezzan. Julian and Reinhard exchange stories and political points on their trip to Phezzan. Reinhard's sister and wife tend to him as he lays bedridden. Oberstein releases a rumor that the Kaiser is getting well to drive out the remaining Terraists. Julian and friends notice the Earth cultists at the hotel and kill the last of the Terraists. Oberstein used himself as bait and died in place of the Kaiser. Reinhard is surrounded by all his admirals, family, and ministers as he prepares to die. Reinhard wants to leave his son with a friend equal to Kircheis and chooses Mittermeyer's adopted son. The Julian fleet members go their separate ways. On July 26th of Space Calendar 801, New Imperial Calendar 3, Reinhard dies. At the Mittermeyer estate young Felix reaches for the stars, echoing Reinhard's ambition.

Reuenthal returns to his office and assigns all domestic political matters to Elsheimer. Trüniht is killed by Reuenthal after they both discuss their ambitions and Reinhard. Reuenthal is visited by Elfriede von Kohlrausch and her baby. Reuenthal requests that she give the his son to Mittermeyer. On November 14th, Space Calendar 800, New Imperial Year 2, Reuenthal dies at the age of 33. Mittermeyer arrives on Heinessen, but is too late to meet with his old friend. Admiral Bergengrün, who also served under Kircheis commits suicide, after hearing of Reuenthal's death. Bergengrün had lost both his commanders to underhanded political schemes. Lang confesses to all his actions and implicates Rubinsky. Rubinsky is nowhere to be found.

The Rosenritter soldiers latch on to Flagship Brunhilde. The Imperial doctors reveal to the admirals that Reinhard has an unknown and incurable disease. General Schenkopp holds off the Royal guard with his soldiers. Reinhard prepares to meet with Julian, should Julian make it to his room. Bittenfeld frustrated with inactivity, rushes into the Merkatz fleet. Admiral Merkatz is killed in battle. Mashengo dies protecting Julian from gunfire. Schenkopp is fatally wounded in battle while Poplan fights off Reinhard's Imperial guard. Julian reaches Reinhard's room for negotiations. A truce is announced.

Ansbach misses; Oberstein protects Reinhard with his body while Kircheis grabs the weapons, but is killed in the process. Reinhard is devastated by his friend's death and is unable to make any decisions for several days. His admirals go back to Odin, arrest Lichtenlade for the murder attempt on Reinhard. Reinhard finally recovers and speaks to Annerose, who decides to retire to a small cottage; Reinhard feels left alone. Meanwhile, in Phezzan, Rubinsky decides to change his strategy, since the balance of power cannot be maintained: Phezzan will support the Empire. He sends Boltik as Phezzan's ambassador to Odin and replaces him with Rupert Kesselring.

Yang boards the Brunhilde and meets with Reinhard. Yang declines an offer by Reinhard to the position of Imperial Fleet Admiral, instead preferring to retire to a quiet life. Reinhard and Yang discuss government and philosophy. The treaty of Barlat is announced, formally ending hostilities. The concessions within the treaty increase civil unrest, public anger turns from the Empire to former Chairman Trüniht. Admiral Lennenkanpt is appointed Imperial consul of Heinessen. Julian, Mashengo, and Boris Konev prepare to visit Earth. June 20, 799 S.C. / 490 I.C.: The regent of the young Empress signs a declaration abdicating the throne to Reinhard. Beginning of the New Empire; year 1 of the New Imperial Calendar (N.I.C.).

Julian answers complaints on Iserlohn. Reinhard visits many locations on Uruvasi. That evening the guards around the guest house act erratically. Lutz, Müller, and Reinhard's personal guards escape via car with a battalion of soldiers in pursuit. In the woods, the Reinhard entourage is attacked by soldiers and snipers. Eventually they meet up with the flagship Brunhilde. High Admiral Lutz stays behind to hold off the soldiers and is killed. Konev brings news of Reinhard escaping Uruvasi with only a single ship. Merkatz advises Julian on Reuenthal possible plans.

Mittermeyer's fleet catches up with Reuenthal's fleet as they head to Heinessen. Grillpalzer betrays Reuenthal's fleet and fires on his former allies. Reuenthal's flagship is hit by long distance artillery. Reuenthal is impaled in in the chest by a piece of metal. Reuenthal continues to order tactics as he becomes pale. Grillpalzer surrenders to Wahlen's fleet. Mecklinger discovers Terraism evidence on Uruvasi hidden by Grillpalzer. Mecklinger orders Grillpalzer arrested. Reuenthal returns to Heinessen with only 10% of his fleet remaining.

While commemorating a cemetery to the Imperial war fleet, an assassination attempt is made on Reinhard. It is revealed that the assassin's family was killed in the nuclear strike on Westerland during the Lippstadt conflict. Reinhard is shaken to the core by his own guilt and inaction during that time. Reinhard asks Hildegard to spend the night with him. The next morning Hildegard goes home to her estate flustered. Reinhard visits the Mariendorf estate, asking for Hilde's hand in marriage. Hildegard is unsure of his feelings towards her, thinking his actions may be due to Reinhard's own sense of obligation.

Julian, Poplan, and the remaining Rosen Ritter soldiers return to Iserlohn. The setting is mixed, a truce was given but the Julian fleet lost many important members. Julian and Kate decide to officially have a dating relationship. Both the Reinhard and Julian fleets arrive on Heinessen. Rubinsky kills himself in the hospital, setting off multiple bombs under Heinessenpolis tied to his brain waves. Reinhard and Julian discuss the next steps politically. It is agreed that Heinessen and its surrounding systems are to be given autonomy for the ownership of Iserlohn. They consider setting up a constitution for the Empire. Both Julian and Reinhard's staff prepare to leave to Phezzan.

And uprising takes place in Westerland, one of Braunschweig's territories. He decides to kill all the inhabitants by a nuclear strike. Reinhard hears about the plan and wants to send a fleet to stop it, but Oberstein thinks it's better to let it happen, record it and use this monstruous act as a propaganda tool against the high nobles. Reinhard is against it, but Oberstein's plan succeeds because he lied about the time of the strike. The images are nevertheless broadcasted in all the Empire: Reinhard becomes the hero of the commoners and, even in Geiesburg, many think its time to get rid of the high nobles. The Lippstadt Fleet makes a last sortie, but is defeated; baron Flegel is killed by his men when he wants to make a suicide attack, and his crew flees to Phezzan. Merkatz, too proud to surrender, decides to kill himself, but Bernhard von Schneider advises him to take refuge in Iserlohn. Braunschweig is forced to commit suicide by Ansbach, his chief retained, who promises to avenge him. September 797 S.C. / 488 I.C.: fall of the Geiesburg fortress and end of the Lippstadt League.

Yang organizes his fleet for a blitzkrieg directly at Reinhard's flagship, the Brunhilde. Reinhard divides his fleet into multiple layers of ships, providing an rotation for each broken layer. Ivan Konev is killed in battle when his strike craft is lured into cruiser fire. Yang realizes that it has become an issue of endurance if Reinhard's fleet is continuously reforming the front line. The Alliance fleet tricks Reinhard's front line into entering an asteroid field. Reinhard is divided from his main force as that group is surrounded by Yang's fleet. Müller's fleet is the first to return, rescuing the Brunhilde and acting as a shield.

Yang's fleet nears firing range of the Brunhilde, but a message from Heinessen declares a ceasefire. During the battle of Vermillion, Hildegard had convinced Mittermeyer fleet to take Heinessen. Hildegard is wary of Reuenthal's ambitions, but has Mittermeyer convince Reuenthal to join the Heinessen attack. In Hildegard's judgement, the battle of Vermillion would have concluded in Reinhard's death before the other fleets could return in time. Trüniht plans to surrender, while the other members of the Alliance government would prefer to fight and die. During the meeting, armed Earth Cult members rescue Trüniht. The surrender of the Alliance has divided Yang's staff, some preferring to ignore orders and kill Reinhard while others grudgingly accept the ceasefire. It is decided that a portion of Yang's staff will escape with Admiral Merkatz to a life of piracy.

Reuenthal plans to divide up his fleet into a formation which would surround incoming fleets. Mittermeyer arrives first, quickly attacking before Reuenthal tactical plans are set up. Mittermeyer uses quick fleet movement to prolong the battle and limit casualties. Over time, Bittenfeld and Wahlen's fleets arrive as well. Wahlen is nearly killed and loses his artificial arm. Bittenfeld's fleet formation is unstable due to it being 1/2 survivors from his fleet and the remainders Fahrenheit's fleet. Admiral Knapfstein is killed in battle. Eventually the battle becomes a war of attrition. As it is reported that Mecklinger is approaching the battlefield in the Rantemario system, Reuenthal orders a hasty retreat.

Yang announces R&R time before the final battle. Julian and Yang discuss the differing battle goals for both sides. The Alliance needs to kill Reinhard while the Empire needs to hold out long enough for reinforcements to trap the Alliance. Yang finally reciprocates Frederica's feelings and proposes marriage after the war is over. Frederica is thrilled at the idea. It is revealed that Yang felt a large amount of guilt at pursuing familial happiness with all the deaths he has caused. Both fleets engage each other cautiously; both sides suspect traps or tricks from the other.

Mittermeyer tries to convince Reinhard to exercise restraint. That same day, a letter from Reuenthal explains the danger of Lang, but ignores Reinhard. The letter's presumption of Reinhard being controlled by Lang and Oberstein infuriates Reinhard. Mittermeyer comes to the understanding that if he had refused the Emperor's order, Reinhard would have led the force. Thus, it would have increased unrest with all Reinhard's vassals. Mittermeyer considers killing Lang, but Kesler stops Mittermeyer. A report initiated by Lutz and investigated by Kesler implicates Lang of unjustly imprisoning and killing Nikolas Boltik. Hildegard realizes she is pregnant. On November 14th, Space Calendar 800, New Imperial Year 2, A space fleet of 42,770 ships commanded by Mittermeyer, Wahlen, and Bittenfeld launch toward Reunthal's territory.

Terraists attack multiple critical infrastructure locations on Phezzan. Communications with High Admiral Kesler are not re established till later when Terraists storm Stehibalm Schloss, the provisional home for Hilde and Grünewald. Marika von Feuerbach, a servant to Hilde leads Kesler and his military police to Hilde and Grünewald before they are assassinated. Hilde is rushed to a hospital where she gives birth to the new prince of the Lohengramm dynasty. Kesler uses torture and truth serum on the Terraists, cleaning out all Terraist influence on Phezzan. Reinhard names his new son Alexander Siegfried von Lohengramm.

Reinhard is displeased by Kempf's report and decides to dispatch Mittermeyer end Reuenthal Fleet; he thinks the best tacticts was to smash Geiesburg against Iserlohn and destroy both fortresses (Yang has the same idea). Imperial scout ships detect Yang's reinforcement fleet. Kempf plans to lure the Iserlohn Fleet out of the fortress by pretending to retreat, then strike and seal it in the fortress, which will allow him to attack the reinforcements. Julian Minci sees through his plan. Merkatz, leading the Iserlohn fleet, pretends to fall into the trap, thus the Imperial Fleet is attacked from behind when it engages Yang's fleet. Kempf finally decides to smash Geiesburg into Iserlohn, but the Alliance's fleet destroys the engines, and the damaged the fortress moves randomly, destroying many imperial ships, before blowing up. The Imperial Fleet falls back but, against Yang's order, some commanders decide to pursue the Imperial Fleet.

Word of civil unrest and the assassination attempt reaches Reuenthal and he orders his subordinates to restore order and find Reinhard. Grillpalzer hides evidence of Terraists on Uruvasi. Reuenthal considers visiting Phezzan and asking for Reinhard's understanding, but he realizes he risks assassination himself from Lang. When news of Lutz's death reaches Reuenthal, Reuenthal realizes the circumstances have forced him to take on the role of traitor. Even if Reuenthal had not planned the attempt, he still failed to ensure Reinhard's safety. Reinhard decides to act with all his abilities against Reinhard. Reuenthal considers offering the remaining republicans in Iserlohn the old Alliance territory if they can blockade Imperial reinforcements from that corridor, thus preventing a two front battle for Reuenthal.

Princess Grünewald visits Hilda and the sickly Reinhard. Although Reinhard's expedition was canceled, the problems of the insurgency and Iserlohn fleet remained. Oberstein is chosen to handle the new problems for the Empire. Oberstein takes Müller and Bittenfeld with him on the campaign. News of the Iserlohn victory bypasses Imperial news censors, causing many protests. Oberstein orders the arrest of all former public officials in the Alliance. Oberstein infuriates Müller, Bittenfeld, and Wahlen with his plan of using hostages to draw out the forces of Iserlohn. On Iserlohn, the Julian fleet wonders what to do if the Empire were to abandon Heinessen and use it as a lure.

In late May of Space Calendar 801, New Imperial Calendar 3 a refugee ship chased by Imperial ships runs into the Julian fleet. The Julian fleet decides to engage the Imperial ships. Eventually both sides send reinforcements and the full number of ships for each fleet is present. The Imperial fleet includes 51,700 ships while the Julian fleet has 9,800 ships. Both fleets act cautiously rotate their front line forces. Reinhard collapses midway through the battle. A communications blackout results in frustration from the Imperial admirals. Poplan intercepts some communications betweet Mittermeyer's ship and Reinhard's flagship. The Julian fleet decides to board the Brunhilde with melee infantry.

The Free Planets Alliance fleet are attacked: the 3rd, 7th and 12th fleets are destroyed and the 5th, 8th, 9th and 10th fleets are heavily damaged; only the 13th Fleet has managed to escape without taking too much damage. Admiral Lobos orders the fleets to regroup in the Amlitzer Starzone. Reinhard orders his admirals to regroup in the same area in order to destroy the remaining fleets. The Free Planets Alliance Fleet suffer further losses during the battle of Amlitzer Starzone (October, 15, 796 S.C. / 487 I.C.).

Schenkopp takes control of the rebel planets on behalf of the Yang fleet. The National Salvation Military Council sends commodore Bagdashu to Yang to pose as a traitor to the coup in order to kill him, but Schenkopp manages to take him away. Yang's 13th Fleet meets the 11th Fleet in the Doria star system; the 11th Fleet is destroyed because its commanders turn down Yang's proposal of surrender. After the battle, Bagdashu decides to join Yang because his victory is certain. Meanwhile, in Heinessen, a peaceful gathering against the coup is held in a stadium. When the army tries to scatter it, it turns into a riot, and thousands are killed, including Jessica Edwards.

As Julian travels to Heinessen to accept his commission in Phezzan; he thinks about how Yang's background in history. Julian reviews the history of humanity during this long trip. The history lesson starts with the birth of the Galactic Republic in 2801 and man's continued expansion into space. The lesson then touches on space piracy, the increase in military powers, and the eventual decadence which let to the rise of the Galactic Empire. The final parts of the lesson include the creation of the Alliance up to the first military conflict between the Alliance and Empire.

Admiral Grillpalzer convinces Admiral Knapfstein to join Reuenthal's side while betraying him later. Mittermeyer discusses battle plans with his subordinates. Wahlen tries to convince Reinhard to exercise restraint. Murai arrives at Iserlohn as Reuenthal's messenger of negotiations. Julian decides to refuse Reuenthal's offer. To accept it would be a short term gain with consequences later from the Empire. Reuenthal and Mittermeyer talk about resolving the situation, but are unable to persuade each other. Reuenthal had realized that Reinhard needed a strong opponent more than anything else. In Reuenthal's fleet, unrest is brewing. Reuenthal explains to his soldiers they are fighting against villainous vassals within the Empire. Moreover, Reuenthal had to secure a victory to raise morale.