- Takeshi is arrested after some guards spot the dead body next to him. He offers no resistance;
- The Five (read Three) are discussing how to tackle Kage;
- The Four meet at the inn and Takeshi is missing;
- The Three look for Takeshi at the Red Dragon Inn and the Thousand Lanterns without success;
- They are allowed into the Thousand Lanterns accompanied to the leader Masao up a flight of stairs and to a kind of guarded office. In the simple room there is an oldish guy, in his fifties who wearing a simple robe and cap. There are other people in the room. He bosses his people around. He offers the Three some gaijin spirit (rum). He is suspicious about the purpose of the Five being here. Somebody turns up and whispers in his ear. He informs the Three that he has been arrested for murder. He says that he will live at least till the morning until the magistrate awakens. Shun knows that Masao has ways to free Takeshi and proposes a deal to free Takeshi against a favor. Shun proposes to eliminate Kage for Masao and he seems willing to accept. Shun asks for information about Kage and gets it. His men sport a red patch painted on their eyes.
- The plan is for Shun to challenge Kage to a duel while Satoru and Ryuki look around for any mischief;
- Ryuki gets a message from Genma that he is waiting for them near the dojo entrance;
- Genma is visibly shaken and has news he says as he shakes snow off his cloak;
- He tells that the Phoenix have found how to make Ishiken from normal people. They serve a malevolent creature that looks like a malformed baby with 6 eyes. They ingest gaijin leaves and are quickly under the spell;
- Shun goes to the Red Dragon Inn and challenged Kage to a duel to the death. no one takes him seriously at first but people look at him amazed as he stays there in the middle of the street, waiting. One of Kage’s men confronts Shun and asks who sent him, he is furious. After a showdown the guy bolts in and windows start to pop open as people are getting interested at what is unfolding. Kage comes out with a sake cup in one hand and a sword in the other and tries to scare Shun off.
- The two take a stance as the duel starts but someone shouts to wait as he takes out a chalkboard to take bets. The hush bursts into a huge commotion as people start making bets and there is chaos.
- The duel begins. As Kage laughs out loud Shun moves forward to take his cup of sake from the floor as Kage’s head, hand and sword split apart from his body and shower everywhere in his blood.
- The Thousand Lanterns is abuzz with mirth and activity. Masao comes down and claps and promises that Takeshi will be freed.
- Takeshi is freed by the local constable and he is unopposed as he goes out of prison.
- The Five meet in the room as they bring Takeshi up to speed.
- A girl rubs up against Takeshi and tries to take his wakizashi out and Takeshi breaks her hand. A guard drags her away but not before Genma heals her.
- The issue of the drugged Ishiken is brought up again. Genma communes with the void and asks about the great cloud spirit. It’s anew spirit that fears discipline and is in control of Taro the master. It is vulnerable to fire.
- The next morning, soup is provided for breakfast. Genma proposes to go to the dojo to get rid of the entity.
- The Five are trying to devise a plan to take the leaf off the market.
- The scene fades to Masao talking to Shiba Hachi with a wanted poster of the Five in front of him.
A lost Bushi, a lost Shugenja and an epic duel