The Initiative order is:
• Vernor's Interceptors: Initiative 4 (Ship Initiative Bonus 2 + Fusion Drive 2 = 4).
• Johanna's Interceptor: Initiative 3 (Ship Initiative Bonus 2 + Nuclear Drive 1 = 3; Defender first).
• Johanna's Cruiser: Initiative 3 (Ship Initiative Bonus 1 + Fusion Drive 2 = 3; Defender first).
• Vernor's Cruiser: Initiative 3 (Ship Initiative Bonus 1 + Fusion Drive 2 = 3).
Vernor decides to Retreat his Interceptors, moving them between the current Sector and the Sector he wants to Retreat to.
Johanna Attacks with her Interceptor and rolls for the Ion Cannon: 3, a Miss.
Johanna Attacks with her Cruiser and rolls for the Ion Cannons: 4 and 2. She assigns the 4 to one of the Retreating Interceptors, destroying it. She places the destroyed Ship next to her Species Board. The roll of 2 is a Miss.
Vernor Attacks with his Cruiser and rolls for the Plasma Cannon: , which he assigns to Johanna's remaining Interceptor. It is destroyed and Vernor places it next to his Species Board.
The first Engagement Round ends and next begins.
Vernor's remaining Interceptor Retreats, moving to the neighboring Sector. Johanna Attacks with her Cruiser and rolls for the Ion Cannons: blank and 2, Misses.
Vernor Attacks with his Cruiser and rolls a . He assigns it to Johanna's Cruiser, which receives two points of damage and is destroyed. Vernor places the destroyed Ship next to his Species Board.
The battle ends, as Johanna's final Ship is destroyed. Since there are no more opponent Ships in the Sector, and this was the only battle of the Combat Phase, players draw Reputation Tiles. As the Defender, Johanna draws a total of three Reputation Tiles: one for participation in the battle and two for the destroyed Interceptors (one for each). She looks at them and keeps the highest one, placing it facedown on her Reputation Track. Johanna then returns the two unchosen Reputation Tiles to the Reputation Tile Bag.
Vernor earned six Reputation Tiles in the battle: one for participation in the battle, three for the destroyed Interceptors (one for each), and two for the destroyed Cruiser. Vernor only draws five Reputation Tiles, however, as that is the maximum number of Reputation Tiles that can be drawn per battle. He looks at the Reputation Tiles and keeps the highest one, returning the rest to the Reputation Tile Bag.
Now that all players have drawn Reputation Tiles, destroyed Ships are returned to their owners.
All battles have been resolved, so the Combat Phase continues with Attack Population. Vernor may now Attack Johanna's Population Cubes in the Sector. He rolls a for the Plasma Cannon on his Cruiser, destroying Johanna's Money Population Cube. The Population Cube goes to Johanna's Graveyard.
The next step of the Combat Phase is Influence Sectors. Since no Population Cubes are present in Johanna's Sector, her Influence Disc is returned to her Influence Track. Vernor may now place his own Influence Disc in the Sector and does so. Finally, he removes the Damage Cubes from his Cruiser. The Combat Phase ends and play proceeds with the Upkeep Phase.