Stage Two Subjugation: Subjugation By Contract
If Stage One fails, the Outsiders reveal themselves to the target species and give a harmless but impressive display of their power, stating that the species is now under their control. They will give the target species some time to digest this information, and then return, demanding to speak to the species leadership. In this meeting, the "Contract" will be established.
For the most part, a species at Stage Two Subjugation is still fairly autonomous, as long as any Outsider edict is immediately followed and the species does not violate the "Terms of Occupation" as determined in the Species Contract.
The Outsiders divide species at Stage Two Subjugation into two groups: "Vassals" and "Battle Thralls". While both groups will have a portion of the species production capabilities sent to the Outsiders, and may need to field warships for specific purposes, they are in general severely different.
"Vassals" are species that are not combat oriented, or are heavily focused on resource acquisition/creation. As such, the Outsiders take a slightly greater percentage of their production capability, but only rarely demand warships for special missions. A Vassal species that had a large fleet of armed starships would most likely be treated to Negative Stimulus by the Outsiders.
"Battle Thralls" are species that are much more able or willing to field warships, or who are unable to provide a significant amount of resources to the Outsiders. The Outsiders may provide limited technological advancement for weapons research or similar, or may in fact take research done by a Battle Thrall species and integrate it into their own technology. A Battle Thrall species that was discovered to be stockpiling additional resources instead of sending it to the Outsiders, or that was discovered to be in communication with a target species, would most likely be treated to Negative Stimulus by the Outsiders.
Humanity was in Stage Two Subjugation from May 2297 until October 2304. We believe that the Outsiders were testing humanity during this period to see which group would be the best fit, as seen by the various resource requests made by them and the sending of human pilots to destroy an IFS war fleet comprised of multiple Chronos-class vessels.
The Jinu were in Stage Two Subjugation for the same period as humanity, but any information post-2304 regarding their status is currently unknown due to the destruction of the "munroujuhk" long-range beacons.
The Children of the Sun are still in Stage Two Subjugation and have been for some time, though the exact length is unknown due to translator inaccuracy.
It is theorised that the vast majority of Vassal and Battle Thrall species remain in Stage Two Subjugation once it is achieved, though humanity and possibly the species of the IFS are notable known exceptions.