Inside the Marmotah, Squad 7 engages the Imperials to allow Faldio and Welkin to search for Alicia. Faldio is shot protecting Welkin and sacrifices himself with a grenade to hold off the Imperials. Alicia is brought in front of Maximilian and he tries to convince her to join him but Alicia calls him a pathetic fool. When Welkin finds Alicia tied up on the deck of the Marmota, Maximilian attacks him using the Artificial Valkyrian System drawing power from the Holy Lance. He frees Alicia and challenges her and Welkin to a duel to demonstrate the power of his superior technology. Alicia regains her strength and unleashes her Valkyrian flame which overloads the system and injures Maximilian. Refusing to surrender, Maximilian hurls himself to his death and the Marmotah beings to collapse...