The Ittou-ryu had its members slaughtered by the shogunate. Kagehisa gathers the remaining members of Ittou-ryu in secrecy, and plots revenge against the shogunate. Manji is invited to the Mugai-ryu by Giichi, but he refuses, and they clash swords. Giichi's weapon breaks, so a truce is called. Manji decides to go meet the head of the Mugai-ryu, Habaki.
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