The King states that he is disappointed in Lacy, yet he pardons Lacy's crimes. The King also meets the shoemakers and is amused by Simon Eyre. Lincoln arrives and asks for the King to intervene. The King reports that he has already pardoned Lacy. Lincoln and Otley ask the King to annul Lacy and Rose's marriage. The King does so, then promptly remarries them. He knights Lacy, names Eyre's new building "The Leaden Hall", and grants Eyre's request that the sale of leather at the market be permitted two days per week. Eyre invites the King to partake of his banquet. The King agrees.