Nicholas has 3 Command Counters remaining in his Strategy Allocation Pool. He also has an un-exhausted planet capable of producing up to 5 Resources.
Nicholas makes a common mistake here. He has forgotten that he has the "Sarween Tools" Technology Card. This technology advantage gives him one additional resource for production at his Space Dock. In the step below he could have built additional units.
He decides to spend 1 Command Counter from his Strategy Allocation Pool and perform the Secondary Ability of this card. With his discounted Dreadnought building ability, he adds another Dreadnought and 2 Ground Forces to his Home System and exhausts that Planet card.
Everyone has exercised the option to play the Secondary Ability from the Strategy Card Steve chose. Steve flips the Strategy Card over (Inactive) but leaves it in his area.
The game turn resumes with the next player action in order as specified by the numbers of the Strategy Cards.
The game resumes with Melissa's next turn.