Fleeing the fall of Constantinople, Theodore, related by marriage to the former emperor Alexius III, took control of Nicaea where he soon began the arduous task of forming a government in exile. To add credibility to his authority he reclaimed as much of the imperial staff as he could find and restored to them their former salaries and titles. The new Latin emperor based out of Constantinople, Baldwin, tried defeating Theodore before he became too powerful. He thus departed Constantinople at the head of an army, met Theodore's forces and defeated them but Theodore himself managed to escape and Baldwin could not afford a protracted pursuit. Once he quit the battle scene Theodore just began consolidating his domains all over again. He went on to repel an incursion by the Seljuks on the eastern front and then to be formally recognized by the Latins who by now realized they were not going to be able to get rid of him. A few more prosperous years passed until his peaceful death in 1222 at which time the imperial title was passed on to his son-in-law John.
SB 2064, DOC IV 2 Electrum Trachy Obv: Jesus Christ seated, facing, raising hand and holding Gospels.
Rev: Theodore I and St. Theodore standing, facing, each holding a sword and together a staff with star atop. (Magnesia).
SB 2061, DOC IV 5a Billon Trachy Obv: The Virgin Mary seated facing, holding baby Jesus.
Rev: Theodore and St. Theodore standing facing together holding patriarchal cross. (Nicaea).