Lysander's term as navarch then came to an end. He was replaced by Callicratidas but Cyrus now stinted his payments for the Spartan fleet. The funds allocated by the Great King had been used up. On Callicratides' defeat and death at the Battle of Arginusae the Spartans offered peace on generous terms. The Delian League would be left in place. Athens would still be allowed to collect tribute for its defense. The war party at Athens, however, mistrusted Sparta. One of its leaders, Cleophon, addressed the assembly wearing his armor, drunk. He demanded the Spartans withdraw from all cites they then held as a precondition of peace. The assembly rejected the Spartan offer. It undertook a new offensive against Spartan allies in the Aegean.