To add a bit more info to what's already been said: Melhed will give up all of Agyr duchy minus Tepmona for Thalmarkin to found a new realm in which will be a recreation of Ar Agyr.
And for anyone who thinks that might be an unreasonable capitulation, it's pretty much what the *dove* faction in Thalmarkin will settle for. The Hawks would've just kept going until the realm ceased to exist, with an inter-faction disagreement over whether to give Fronepu back to Fronen or keep it for ourselves.
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