We are introduced to the character Hinao, she explains the Japanese system of katanas. It’s legal to possess them for “self-defense.” but they’re not enough. Apparently, this is where sorcerers like the Hishaku come in. They provide additional protection mainly for criminal leaders like the Yakuza. Three years prior, Shiba entered her shop to inform her of Kunishige’s death. Suddenly, a little girl named Char provides information regarding one of the of the enchanted blades.
While she’s asleep in the backroom, Hinao reveals that the young girl needs a sorcerer because she being chased. This person possess one of the enchanted katanas. Chihiro and Shiba don’t believe the girl’s story. They think she may be making things up. When she wakes up, Shiba begins questioning her. She’s an orphan and he considers taking her to an orphanage. Shiba heads outside for a smoke, while, Chihiro and Char eat Tempura. Chihiro asks her to describe the “strong sword,” she saw. Char remembers almost nothing about it other than it had “clouds emanating from it.”
Behind them arrives a customer that quickly causes a disruption. He stabs a waiter in the neck with chopsticks. He assumes Chihiro is Char’s bodyguard. The mystery man creates a bomb in thin air and blows Chihiro outside. Chihiro assume that this sorcerer is a follower of whomever has his fathers katana. Chihiro grabs his sword and prepares to fight.