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.
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