Uvanov continues to consolidate his power in the Company by having Iago assassinate anyone who may potentially pose a threat. However, Iago requests a day off to visit his dying mother, and Uvanov thus appoints security chief Cotton as his acting bodyguard in Iago’s absence. During his brief tenure, Cotton discovers that Iago and Justina have been scheduling sexual liaisons during working hours, and accidentally blows up Uvanov’s arboretum during a training exercise. Meanwhile, security topmaster Stenton Rull investigates a 0.5% deduction on his payslip referred to as “the Larson project”.

Ostensibly for insurance reasons, Uvanov demands that Iago allow flymaster Guido to transport him to his destination. Instead of going directly to Zone 5, however, Iago orders Guido to stop off in Zone 7, where Iago plants explosives on something the size of a storm miner. When Guido demands an explanation, Iago kills him, and then flies out to Zone 5 himself to kill a man named Leighton. Later, Uvanov also demands an explanation, and Iago claims to have learned that Leighton, who bore a private grudge against Uvanov, was in league with a terrorist group called “the hands of Capel”. Iago has now dealt with the problem pre-emptively, or so he tells Uvanov.

Meanwhile, the Church of Taren Capel, under the leadership of a man named Paulus, is preparing for their next attack, with the aid of former security officer Blayes. The plan is to blow up oxygenator 4, knocking out air for the entire eastern district of Kaldor City and causing civil unrest. Blayes, Crane and Manzerak intend to slip in with false IDs, plant their bombs and get out -- but unfortunately for all concerned, their attack coincides with a security drill. The Tarenists thus end up trapped in the control room with two terrified technicians as hostages, but a third technician, Bergenza, manages to flee to safety. Security forces surround the area, and Rull takes charge of the situation.

This does not suit Uvanov, since Carnell manipulated Blayes into joining the Tarenists so that he’d have someone in charge of the cell whose actions he could predict and manipulate. If she is killed, they’ll have to start from scratch. Uvanov thus orders Carnell to devise a strategy to get Blayes out in one piece. Carnell arranges for Firstmaster Landerchild to strike a deal with the Tarenists, offering to send in Iago to negotiate the release of the hostages. Once he is inside, Iago informs Manzerak that Blayes has been working for Uvanov all along, using the Tarenists to kill Uvanov’s political enemies to increase his power within the Company. Manzerak turns on Blayes, and while he’s distracted, Iago overpowers him and gives Blayes the opportunity to follow his instructions and save her own life. Blayes shoots Crane herself, and Iago snaps Manzerak’s neck -- and Iago then kills the two hostages himself to ensure that they won’t be able to identify Blayes afterwards.