Mads is back in business and expands on all fronts and moves his family to a large villa outside of Korsbæk. The Varnæs couple returns from a trip to Paris, envigourated and with Maude bringing back something extra. The Varnæs home is to house a party with people whom they've met in Paris much to Laura's regret.

Jørgen Varnæs feels Mads' hand when Jørgen has taken an early Christmas vacation (on December 7) and has traveled to Switzerland. Upon his return a month later, Mads de facto reduces Jørgen's salary by half. Jørgen seeks help from his brother who is unable to provide any relief. Hans-Christian bites the bullet and seeks out Mads to speak for Jørgen.

As Oluf Larsen is arranging pictures of assorted fascists in his outhouse, he's surprised by Herbert Schmidt, returned from Spain. He's reunited with Vicki, who'd become a teacher at the private school (replacing teacher Andersen). World War II breaks out causing rationing of certain goods in Denmark (sugar and gasoline). Agnes is to wait at Daniel's confirmation party, leaving Lauritz to look after the children - with the most serious consequences.

Laura, having served the Varnæs family for 25 years, are going with Maude to Copenhagen to receive a medal for "loyal service". There, Maude, through a childhood friend meet a German who presents himself as a banker. Agnes, coming to see Laura get the medal, looks up Herbert Schmidt who's putting up a play called "The Boots" in Copenhagen.

Sofus Jensen, Korsbæk's beat policeman, seeks out Lauritz along with a police lieutenant early in the morning of June 22, 1941, the day Hitler declares war against the Soviet Union. The good nurtured officer feigns a story that Lauritz has already left the premises so as to give Lauritz a chance to escape. Lauritz seeks help from the Larsen family, and through Kathrine, Lauritz gets a lift to Copenhagen via a reluctant Mads.

Skjern's business is thriving despite the war and in part due to Daniel's help. The local resistance group launch sabotage missions, and the pictures of dictators in Larsen's outhouse has him thrown in jail, which puts the entire resistance-group in danger, causing Baron von Rüdtger to also get involved with the movement. Mr. Stein, Varnæs' trusted bank manager, falls victim to harassment due to his Jewish background, and later he must flee the bank as the Germans launch their endlösung hunt for the Danish Jews on October 1st 1943.

Doctor Hansen seeks out Agnes Jensen and offers her to flee with her children to Sweden, where her husband Lauriz is. But her business is thriving, and she refuses. For business, Agnes seeks out Mads Skjern, who is impressed by her ingenuity. Mads agrees to a rare and lavish bet, when Agnes desires to buy her business' lodging house from Kathrine Larsen, which only Agnes believes that Kathrine can be talked into. Meanwhile, Mads is reluctant to do business with the Wehrmacht, while also warning his brother Kristen against his operations in the resistance.

The war makes it increasingly difficult to secure heat even for the Varnæs family, who send their children to the public bath house. Misse Møhge wishes to arrange her financial plans with the Varnæs brothers before her wedding, but the brothers seek a delay because of the ongoing war. Misse and Andersen are married. Mads seeks to purchase a seaside farm house and estate, which he wishes to divide up and sell. He enters a shady tax-evading deal with both the house's owner and Jørgen Varnæs, who buys the farm on behalf of Mads, in exchange for a small unsolicited fee.

The funeral dinner for Frederik Andersen is progressing at the Varnæs house when the radio suddenly broadcasts the news that the Germans have surrendered in Denmark. Amidst general rejoicing, Dr. Hansen and Kristen Skjern reappear and pay a visit to the Varnæs house, where Kristen is reunited with Elisabeth Varnæs. Mads is very nervous about Ellen, since her father-in-law had lucrative business dealings with the Germans and has been arrested as a collaborator. Mads decides to find Ellen and bring her home.

Skjold Hansen has announced his retirement from the Korsbæk Bank Board. Bank President Jessen suggests that Jørgen Varnæs return to the board as Skjold Hansen's replacement, but he wishes to meet with him first. Hans Christian Varnæs organizes a dinner for them. There, Jessen confronts Jørgen with his suspicion that his wife, who is the sister of the seller, was defrauded of her share of the proceeds from the farm sale that Jørgen conducted as a front for Mads Skjern. Jessen demands an investigation, before he will nominate Jørgen for the vacant bank directorship.

Ulrik reveals to Ellen that he is to marry Maja, prompting Ellen to sever all relations. Misse, now a widow, reveals to the leading ladies of the town that she's attracting men, even the pious Provost Meyer, who she claims to have seen on her balcony. Chairman Jessen from Korsbæk Bank, unsatisfied with the business involving Jørgen, finds another candidate for the board position - the Mayor. Mads gets wind of this and arranges the Mayor's inclusion in Omegnsbanken's board, while accusing Kristen of professional negligence.

Mads comes home from a trip to USA bringing with him new business ideas. Despite Daniel not having completed his exams, Mads calls on Daniel to help implement the ideas. Mads is yet again disappointed when Daniel declines, and opts to go to Paris and study fashion.