The legend ends, and history begins.

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.

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.

Julian finds Yang's body. The Yang staff return to Iserlohn. The crew of Iserlohn enter mourning. Julian tells Frederica about Yang's death. It is decided by Yang's remaining staff that Frederica will assume the role of political leader. Julian is considered to be the next military leader. Julian accepts the role of military leadership after talking with Frederica. Unrest within Iserlohn grows and there is talk of desertion. Admiral Murai speaks with Julian and gives him his resignation. Murai intends to fulfill his last task for Yang by taking all dissidents from Iserlohn with him as a desertion leader. The remaining leaders of El Facil abandon the Yang fleet.

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.).

Bucock's fleet advances through the Müller fleet while being pursued and surrounded by many others. Bucock's Alliance fleet is unable to charge and kill Rienhard. Hilde advises Reinhard to offer surrender to Bucock. Instead of accepting defeat, the Alliance officers toast to friendship and democracy. Afterwards, the Imperial fleet decimates all remaining Alliance ships. The Imperial victory celebration is cut short when news of Lutz's defeat at Iserlohn is received. The situation has changed for the Imperials if the plan was coordinated. The Imperial fleet would have cut off supply lines if Phezzan fell as well. With that possibility, Reinhard could have underestimated the importance of Iserlohn. Countering the panic, Hilde points out Yang would not have sacrificed his allies for a stall. The Imperial forces thus resumes their course for Heinessen.

The Imperial fleets adopt a tactic of attrition via rotations. The Müller fleet, Mittermeyer's subordinates, Bittenfeld and many other Admirals rotate on the battle line. Yang's fleet, with less that 20,000 ships left fights on with no rotations in manpower. Bittenfeld's elite troops cause a fatal blow to Yang's fleet. Admiral Fischer, the one in charge of Yang's fleet maneuvers is killed in battle. Reinhard passes out from sickness. A ceasefire is announced. The Yang fleet passes out in Iserlohn.

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.

Bittenfeld is wary of the message and takes a cautious fleet formation. Yang takes advantage of the communications jamming between both sides of the corridor and tricks Mecklinger into withdrawing to the entrance of the Imperial side. The Bittenfeld fleet is lured into the corridor by Attenborough's fleet. Fahrenheit's fleet follows Bittenfeld, planning to overwhelm the Yang with numbers. Yang uses the superior numbers of the Imperials against them, forcing the Imperials to cluster together inside the tight corridor. High Admiral Fahrenheit is killed in battle preventing the complete destruction of the two Imperial fleets.

Attenborough's fleet lines the entrance of the corridor with mines. He plans to snipe the Imperial fleet as they come through small holes within the minefield. The Imperial fleet creates 5 entry holes through the minefield to establish a bridgehead. Steinmetz is killed in battle. The Imperial fleet movements are sluggish within the corridor. Reuenthal orders the Imperial fleet to feign a retreat. The Yang fleet approaches the Reinhard's flagship but is unable to penetrate the battle line. Both sides withdraw.

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.

All military campaigns for both the Alliance and Empire are put on hold to celebrate the new year. Admiral Lutz starts receiving multiple conflicting launch and Iserlohn defense orders. Reinhard is furious at Lutz's refusal to launch. Lutz finally launches with all his forces, hoping to sandwich the El Facil fleet between him and Thor's Hammer. The Rosen Ritter disable the Thor's Hammer with a previously encoded computer lock down code. The enemy infantry forces are superior in numbers, but not in skill or morale. The Rossen Ritter eventually enter a backup control room and fire the Hammer at Lutz's returning fleet. January 14th, 800 S.C. / 2 N.I.C.: Iserlohn is once again under Yang's control.

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.

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.

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.

Reinhard is devastated at the death of Yang. Müller is sent as official Imperial envoy in condolences for Yang's death. Mittermeyer and Reuenthal discuss Yang's death and the new peace. Reinhard while sick, continues autocratic reforms. Reinhard is regretful of Silverberche's death. Hildegard, being in a military position is not able to cross over to domestic political advise. Reinhard realizes that outside of himself, Hildegard, and Silverberche, there is not anyone with skill in politics equal to his admirals in military affairs.

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.

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.