Livia and Ryan were talking at the courthouse. Livia expressed concern as to whether or not Jonathan deserved her services. Ryan assured her that Jonathan loved Lily. He also asked Livia for help with Zach and Dixie's trial. He told Livia to let him know if she needed anything to make sure they were not found guilty. Livia asked if he thought they were guilty and if he would do something illegal to help them. Ryan promised not to interfere with her job, but Livia was not convinced. Meanwhile, Jack and Jonathan were in the witness room. Jonathan told Jack he loved Lily, but Jack did not believe it. Jack thought Jonathan was using Lily and conning her. Jonathan said Jack just could not believe a normal man could love his autistic daughter. Jack did not consider Jonathan normal. Jonathan stated Jack would ruin Lily's life by continuing to call her incompetent. Jack said it was not his fault, but Jonathan's because he lied to Lily. Jack then told Jonathan he could prove his love for Lily by confessing the truth. Jonathan said he would tell the truth if Jack would drop the petition. He also asked Jack to let them stay together if Lily still wanted to be married. Jack took the deal because he assumed Lily would not want Jonathan after she learned he lied to her. Meanwhile, Lily was in the courthouse, wondering what Jack and Jonathan were discussing. While she waited, Lily told Amanda and Erin how happy she was to be married. Lily wished the judge would side with her so she could remain married to Jonathan. Then, Jack returned and the case continued; however, Jonathan did not come back in. Jack announced he was dropping the petition. Lily was ecstatic and ran into the witness room to find Jonathan. She expressed her happiness to Jonathan. Jonathan still spoke with a stutter and reminisced with Lily about the good times they shared. He told Lily he loved her and she said she trusted him more than anyone. Then, Jonathan began to speak clearly. He explained to Lily that he changed after his seizure in the park. Lily was shocked and stated her father was right, Jonathan lied to her. Jonathan asserted he still loved her and wanted to remain married. He asked if she would continue to be his wife. Lily sat silently with tears in her eyes. Outside the room, Livia approached Jack. Livia said there was no winner in this case and Lily might be the biggest loser in the end. Erin and Ryan were also discussing the couple. Erin stated Jonathan loved Lily just like Ryan loved Kendall. She said it gave her hope and asked how Ryan could help Zach. Then, a news report was heard on a nearby TV. It said Zach was gambling with love and murder. Erin and Ryan looked stunned!
David went to Dixie's hotel room, but found Zach there instead. David inquired if they were having an affair. Then, Dixie walked in and Zach announced David knew about their affair. Dixie looked surprised as Zach lovingly kissed her forehead. David was appalled that Dixie chose to be with Zach and not him. Dixie followed Zach's lead and explained she and Zach grew close in their pursuit of Kate. She said Zach made her happy. David called her a "faithless slut"! Dixie said David had no right to her. David claimed he would get her off from the murder charge if she dumped Zach. Dixie told David to get lost. David proceeded to take out his cell phone to call Kendall, but Zach said she already knew. Zach then kissed Dixie and David left. So, Zach explained to Dixie that an affair would be their alibi. Dixie inquired if this would ruin his marriage, but Zach said Kendall supported the plan. Dixie was shocked Kendall approved and revealed to Zach she told Kendall she was falling for him!
Erica and Kendall were disgusted to see Josh and Babe getting along so well at Fusion. Kendall exclaimed, "Step away from the tramp!" Josh was upset with Erica and Kendall's disparaging remarks. He left and Kendall followed him. They began to talk on the roof. Kendall said she did not know they were related for a long time; however, she admitted she urged Erica not to tell him the truth. She explained she knew how he would feel and did not want him to go through the same pain she did. Josh believed their situations were different because Erica gave Kendall up for adoption, but had him aborted. Kendall then revealed how much she hated Erica at first. She detailed her many acts of revenge, but said Erica never gave up on her. Kendall believed Erica would not give up on Josh either. Kendall also told him how terrified Erica was when his plane went down. Kendall said she understood if Josh did not want to come to them, but encouraged him to consider letting them come to him. Josh told Kendall to tell Babe he had some stuff to take care of and left. Meanwhile, Erica and Babe were downstairs having a heated discussion over Josh. Erica asked Babe if her relationship with Josh was payback to her family. Babe told Erica to bring it on! Babe also stated she made mistakes and was sorry for them. Erica believed Babe kidnapping Miranda was more than a mistake. Babe said it was hypocritical of Erica not to forgive anyone when she was asking Josh to forgive her. Erica asked why Babe cared so much for a man that was not her husband. Babe inquired if Erica ever actually forgave someone. Erica assured Babe she would never forgive her and left. Meanwhile, Danielle and Simone were happy to have the office quiet to do work. They turned on the TV and saw a report on Zach and Dixie's affair. Babe walked in and saw it too. Then, Kendall entered and was curious about what they were watching. Simone tried to divert Kendall, but she looked at the TV anyway and saw a picture of Zach and Dixie kissing!
In Erica's house, a man, with a disclosed identity, let many people inside. The man took a picture frame and put it in a gym bag. Another man brought another gym bag in. Then, many people passed out beers, shook them up, and sprayed them all over. Erica finally came home and was dismayed by the wild party in her living room!
Jonathan tried to calm down a distraught Lily as she reeled from the news that he'd been lying to her about their "sameness." "I still love you," he pleaded. Lily railed at Jon for betraying her. Jack burst in and icily told Jon that it was over between him and Lily. Ryan and Erin tried to comfort a devastated Jon. After his siblings left, Amanda entered to give Jon a shoulder to cry on. She had little luck getting him not to beat himself up for the pain he caused Lily. Amanda offered to try to help him regain Lily's trust.
Erica freaked out when she returned home to find a gaggle of teens partying in her living room. One of the shirtless revelers revealed himself to Erica as Sean Montgomery, her nephew (Travis and Barbara's son). Erica threw everyone out, Colby and Sydney included, so that she could talk to Sean. Sean explained that Barbara had sent him there to visit Jack. Erica called Barbara but hung up when Jack and Lily returned. Lily freaked out over the state of chaos in the living room and tried frantically to restore order. Erica assured Lily that the situation was temporary. Jack began to explain to Erica what happened in court. "Don't talk about Jonathan!" barked Lily, who then ran upstairs. She screamed when she encountered Sean. "Don't touch her!" Jack ordered Sean. Erica blamed Jack for Lily's condition; Jack held Jon responsible. Erica warned Jack that Lily was not going to bounce back from what he'd done to her. Jack insisted that one day, Lily would thank him for his actions. Erica tried to get Jack to throw Sean out of the house, but Jack refused.... Lily yanked off her wedding ring.
Colby and Sydney discussed Sean's cuteness. They both declared their intent to land his affections.
Ryan, Amanda, and Erin watched in shock as the TV newscaster broke the news of Zach and Dixie's affair. At the Fusion offices, Simone, Babe and Danielle rallied around Kendall as she absorbed the image of Zach and Dixie smooching. David entered and revealed that he was the one who took the picture of the buss. "We've been played for fools, Kendall," David seethed. Ryan and Erin arrived and Ryan told Hayward to back off. The press then rushed Kendall, wanting a comment on the incriminating photo. Kendall told them to follow her.... Babe, who was unmoved by David's devastation over Dixie's "betrayal", defended herself yet again to Simone when Simone accused her of being happy about Kendall's heartbreak.... Dani, Erin and Simone all let up on Babe, banding together to actually, ya know, work.
In Dixie's hotel room, Zach and Dixie discussed their faux affair and the fact that she is genuinely falling for him, which didn't sit well with him. Dix assured Zach that she could handle the situation. Kendall then barged in, camera crew in tow, and smacked Dixie across the face. "You should have stayed dead!" she hissed. Ryan tried to hold Kendall back as she and Dixie traded nasty insults. As part of the show, Kendall also made it clear to Zach that their marriage was over. After everyone but Zach left her room, Dix sighed that Kendall seemed a little too convincing.
Jamie and Aidan were playing basketball without their shirts on. After Jamie beat Aidan, he admitted he wanted to play so they could talk. Jamie proceeded to ask why Aidan was not working hard to prove Dixie's innocence. Aidan said Tad asked him not to pursue the case. Then, Tad walked up. Jamie was annoyed with his father. He asked why he was so bitter and why he would let his feelings deter him from helping Dixie. Tad explained Dixie's relationship with Zach disgusted him. Tad added he would never try to hurt someone Jamie loved, including Dixie. Jamie said Tad may not be trying to hurt her, but he was not helping either. Tad sternly told Jamie to drop it! So, Jamie left, but not before he told Tad about Brooke finding him in bed with Julia. Next, Aidan and Tad discussed the difficulties of love. In addition, Aidan asked for Tad's approval over a romance with Di. Tad gave his blessing.
Ryan, Spike, and the nanny were in Kendall's condo. Kendall was acting irate over Zach's affair. She even had a locksmith come to change the locks. Ryan quickly sent the nanny and Spike to his condo. Kendall continued to rant and rave over Zach's betrayal. Then, Zach walked in. Kendall went crazy with rage! Zach said he was sorry about the affair and wanted her back. Kendall leapt at him and Ryan held her back. Zach asked to speak with her alone and she reluctantly gave in. Ryan walked outside to find Annie in the courtyard. They could still hear Kendall screaming and throwing things. Annie thought Ryan was in love with Kendall. Ryan denied it, but Annie did not believe him. She said she was very grateful to Ryan and wanted to help him with Kendall. Meanwhile, Kendall was still yelling at Zach inside. Zach told her she could drop the act and went to kiss her. Kendall backed away and said she might be seriously angry. She then asked why Zach put the plan into action without telling her first. He explained David came to the casino and he had to act fast. Kendall believed Dixie was more than happy to have a pretend affair with Zach. Zach reassured Kendall he loved her only and they kissed passionately. Zach then left and saw Ryan and Annie outside. Ryan warned Zach to stay out of Kendall and Spike's lives. Zach questioned if Ryan's motives were selfish and left. Ryan went inside to see Kendall. Kendall seemed upset, but Ryan said he knew she was only acting. Ryan said he yelled at Zach to help her performance. And, he knew the truth because Zach was capable of anything, except cheating on Kendall. He also concluded that the affair was a perfect alibi. Kendall denied it. Ryan stated he did not want Kendall to let him in on the plan because he might have to testify eventually. Nevertheless, he offered his help. Kendall told him to continue being a good dad. Ryan suggested Kendall couple up with him to make the act more feasible. Kendall did not want to lead Ryan on, so he assured her it would be fine. Kendall told him he was amazing and they hugged.
Josh and Babe were working late in the Fusion office. Babe suggested Josh go home and rest. Josh said home seemed like a black hole. Babe told Josh she was impressed with his ability to start fresh. She used his versatility in business, television, and medicine to prove her point. Josh told her to stop or he would never get over her. He then asked her if Kendall was an honest person. Babe had no comment. Josh told her about Kendall's view on Erica. Kendall believed Erica would be relentless with Josh. Babe actually agreed with Kendall. She explained Kendall had a similar experience with Erica and was looking out for Josh. Josh asserted he did not care about Erica. Babe said Kendall was not Erica. She also told him that Kendall and Bianca did not grow up together, but became completely devoted to each other. She urged Josh to be open towards his siblings.
Erin was in ConFusion and saw JR sitting at a table. He admitted he was stalking Babe, who was still working upstairs with Josh. He wished he could go and beat up Josh. Erin said she still wanted to help JR by hitting on Josh. She believed both her and JR would benefit from the setup. So, she went upstairs to interrupt Babe and Josh. She told them they were in need of a snack and encouraged them to join her downstairs. They said they were in the zone and declined. Meanwhile, Julia and Di were in the bar, discussing their hot romances. Erin came back and confronted Di. Di said it was a one time deal and Erin could have Aidan. Erin told Di to take him. Then, Aidan and Jamie showed up to meet Di and Julia. Also, Zach walked in and JR immediately approached him. He asked about Zach's relationship with his mother. Zach told JR they did not kill Dr. Madden because they were having an affair the night he went missing. JR asked if the police knew and Zach said yes. JR toasted Zach and said, "Here's to freedom." Eventually, Babe and Josh entered the bar. Babe told Josh about Zach and Dixie's affair. Just then, Ryan and Kendall walked in together.
Annie was putting Emma to sleep in the penthouse and the phone rang. She picked it up and T was on the other end! He said he called every apartment hoping to find hers. Then, Emma called out to her mother and T heard the little girl. He told Annie to inform Emma he would be seeing her real soon. Annie looked terrified!
Erin descends into the bar crowd at ConFusion and spies Aidan with Di at the bar. Jamal comes over and tries to cheer her up to no avail. He offers to tell Aidan the truth about their kiss so that she can take a shot at winning him back, but Erin urges him to keep the secret.
Kendall and Ryan show up at the bar, and knowing that Zach was already there, everyone starts to speculate about the inevitable scene that will play out before them. Kendall immediately spots Zach and JR sitting at a table together and points them out as the man who tried to kill her, and the man who stabbed her in the heart. Zach drunkenly tells her that he wants to talk to her but she reminds him that he has no right to ask anything of her. She walks off, and Zach makes an announcement about how one meaningless night with Dixie gave him an alibi that should get the charges dropped against him in the Madden murder case, but also destroyed his marriage. This enrages JR, and he wants to know how Zach could throw his mother away so carelessly. He loudly notes that perhaps Zach enjoys taking advantage of women when they are down and out. Babe pulls her husband aside and tries to calm him down. She suggests that they go home, but JR rejects that idea and opts to go check in on his mom. With JR gone, Josh takes the opportunity to check in with his new boss. She isn't as receptive as he would have liked, saying that she was hoping that JR would want to talk longer than he did. She tells Josh that she is going to close up the office. She gets part way up the stairs before Erin stops her and asks Babe if she is having an affair with Josh. Babe reacts with an appropriate amount of surprise and reminds her colleague that she is a happily married woman, and that she hired Josh because he is good at what he does. Erin thought that it would be a professional courtesy to make sure Babe would be okay if she made a play for Josh. Babe tells her that it's not needed, so Erin heads back to the floor as Babe watches somewhat glumly.
Di tries to let Aidan off the hook when it comes to dating her, because history makes it very clear that she is bad at relationships. Aidan tells her that there are a lot of possibilities outside of strictly dating if she is willing to give it a shot. She admits that she is interested but needs to talk to him about it more and get more details. He goes to get her a drink, and Del stops over to chat. They briefly talk about how great it is that Dixie now has an alibi, but Del soon notices that his sister is distracted. He follows her gaze, and then asks if she has something going on with Aidan. She laughs playfully and hurriedly sends him on his way. Aidan returns in short order and they discuss the things they could do as a couple. Then, needing to be alone, they head to the rooftop and Aidan ends up chasing Di. With very few places to run, he catches her easily, sweeps her into his arms and kisses her.
Jamie and Julia decide to leave the bar. A short time later, they arrive at the basketball courts. Julia tries to get her man to play a game of one on one, and is met with failure. She asks why he's so distracted, and Jamie confesses that his father is holding a secret that leads him to believe that Dixie is guilty of murdering Greg. He tells her that Tad must know something concrete to lose faith in Dixie. Julia asks if Jamie agrees with his father, and Jamie admits that Dixie had a good motive for committing the crime. He then notes that with that reasoning, many other people could have committed the crime as well, and can't be sure if he agrees with his father or not. Julia thinks that she might have another idea for a suspect. She reminds him that Greg told her a bunch of lies, including that she was infertile and therefore could never have a child. That alone could put her in the lineup of possible killers. Jamie doesn't believe that Julia would be capable of killing Madden, and she feels compelled to remind him that she already killed one man. Jamie says it's just as possible that he could have done it, and then decides that perhaps his father was right and that they should leave it alone. They cozy up on the park bench, each wrapped in their own thoughts.
In her room at the casino, Dixie sees the video playback of the confrontation she had with Kendall. She turns off the TV just before JR shows up at her door. He can't resist verifying that the rumors are true, and Dixie reluctantly admits that they are. JR tells her that he is in no place to judge her after all of the things that he has done, but admits that he is angry because he thinks that Zach took advantage of her. Dixie tells her son that Zach didn't do anything that she didn't want him to do. She goes on to extol Zach's virtues, and after listening for a few moments, JR demands to know if Dixie is falling for Zach. Dixie tells him that she is only grateful to Zach for all he had done for her up to this point, and that she doesn't need protection. JR offers to get her out of the casino by having her move into the mansion - especially since she hasn't had much time with her grandson. Dixie notes that an arrangement where she would have to eat breakfast across the table from Adam would never work. Watching her closely, JR then announces that he thinks his mom is staying where she is so that she can make a play for Zach. He warns her away from doing anything of the kind, as she has been ripped apart enough. She insists again that she can take care of herself. JR gets ready to leave, and then goes back and wraps her in a big hug and tells her that he loves her. She hugs him back and tearfully tries to relay how much it means to hear him say those words to her. He then reminds her that Zach will only let her down because he is in love with his wife. Dixie tells him that Zach never promised her anything except to help her find Kate, and notes that her son needs to trust her. He hugs her again, and then takes his leave.
On the other side of the bar, Kendall is tortured by having to play out this game of hating her husband in front of everyone. Ryan consoles her, saying that even though the road ahead will be difficult, everything will turn out fine. Kendall continues to make note of how hard it is to hurt Zach in public. Ryan offers to ease her pain by taking her home but Kendall refuses, saying that she promised Zach that she would hold up her end of the deal. She then decides that it is time for round two, and moves to the center of the room to get everyone's attention. She offers up a toast to the person that really killed Greg Madden - firstly because they rid the world of an evil man, and secondly because it brought another one to light. She raises her glass in Zach's direction and tells everyone that drinks are on the house. Josh makes his way over to his newly found sister and blasts her for her distasteful toast, saying that it was really a nice way to introduce him to the family. Horrified, Kendall apologizes and he tells her that if she wants to destroy people, she might want to watch where she is aiming. He walks off and she chastises herself for taking down innocent people with her pain. She then decides that the next display needs to be bigger and tells Ryan that she needs his help. Knowing that mischievous glint in her eye, Ryan tells her that he is game. They strut to a prominent position at the bar and paw at each other seductively. A drunken Zach stumbles over and demands that Ryan get his hands off Kendall. Kendall reminds her wandering hubby that his actions caused him to have no rights to tell her what to do, and then proceeds to lay a kiss on Ryan. Zach rips her roughly away from Ryan, which does nothing but infuriate Kendall. She yanks herself out of Zach's grasp, giving Ryan space to land a punch to Zach's jaw. Kendall immediately does damage control, telling everyone that everything will be fine. She then demands that Zach leave, and after giving them a rather dumbfounded look, he staggers up the stairs and out the door. After checking on Kendall, Ryan follows in Zach's footsteps, presumably to make sure that the sot really leaves. He gets outside and Zach appears from the shadows, revealing that his drunk demeanor was all an act. He tells Ryan that he knows he can punch harder than that, and confirms that Ryan is in the know about the plan. He then says that an alibi will go a long way in getting him and Dixie cleared of the charges against them. Ryan tells him that he will do whatever necessary to make sure everything works out and that Kendall gets what she wants. They part ways, and Ryan goes back inside and finds Kendall sitting alone on the couch. He takes her arm and leads her out of the club. As they walk toward the car, he kisses her on the forehead, and Zach reemerges from the shadows, watching them.
Erin catches up with Josh at the bar and tries to covertly flirt with him. When he doesn't pick up on her signals, she tells him that she checked in with Babe, and that Babe was fine with her going after him. Josh's interest is peaked at the mention of Babe's name, but it goes largely unnoticed as Erin asks him what kind of moves a girl would have to employ to get his attention. Although flattered, Josh turns her down because he thinks that she would be better off going after someone with less drama in his life.
Babe makes it upstairs and goes to save the files that she worked on before leaving. She starts to walk toward the elevator when a beep from the computer alerts her that something is wrong. She goes back to find out that she accidentally deleted her files. In frustration, she hits the computer, vainly hoping that somehow the jarring motion would bring the files back to the screen. She realizes that in doing so, she hurt her hand. Josh arrives at that moment, and tells her that he installed a demon on her computer. Knowing the story about how she had been sabotaged by her coworkers, his program install automatically saves her work every 15 minutes so that she always has a backup. Babe tries to show her sincere gratitude, but Josh demands to see her hand. As a medical professional, he is able to give her the very dry diagnosis that she banged up her hand and that she would have a bruise. He then lets her know that he is aware that she tried to give him away to Erin, and reveals that he turned her down because Erin isn't the woman that he is interested in. They share a moment while he is holding her hand, and then Babe breaks away and leaves the office.
Derek and Livia talk about whether the witness that came forward as an alibi for Zach and Dixie is real or not. Derek doesn't think it's possible, because he clearly remembers how dedicated Zach was to Kendall when she was in a coma. Livia points out that his reasoning might make sense if Dixie or Zach were the ones that came forward, but as it is - their affair was made public by David Hayward. Derek still isn't convinced, thinking that the duo would do whatever they could to get out of jail time. Livia tells him that when faced with the possibility of dealing with Kendall's wrath, jail might be the better option. Shortly thereafter, they meet with the witness. Derek is skeptical, as he can't fathom how the clerk would remember these two particular faces out of all of those that had to pass through the door. The witness tells him that when Zach came in to pay for the room, he had a look about him that told people not to mess with him. The man then says that Zach paid in cash and that it was apparent what they wanted the room for. Derek questioned how he could be sure of how long they were in the room, and the witness replied that the room he gave them was in clear view of the seat he occupied all night while playing poker with a friend. Then, Derek asks the witness to describe Dixie. He chokes a bit, and looks to Livia for backup. Derek calls his attention back and says that he wants to hear a description without any coaching from his attorney. He finally admits that he only saw Dixie when she got out of the car and went into the room. He described her and having blonde hair that was slicked back, and that she was wearing tight clothes that showed off her body, and long sparkly earrings. Livia thinks that the description is good enough to have the charges dropped - but Derek isn't ready to give up so easily.
At the Chandler mansion, Colby is singing and dancing around outside, while Sydney works. Colby begs Krystal to let her have a birthday bash, even calling her "mom." Krystal hands Colby a budget, which does not go over well with the teen, and allows Sydney to co-host the party, since she will be turning 16 soon too. Of course, Colby refuses to share her party with Sydney, but Krystal simply advises her to learn how to share. After Krystal leaves, Sydney says she will outshine Colby at the party.
Jackson tells Sean they need to figure out his arrangement at the house, but Sean is one step ahead. He says that since Erica doesn't want him around, he is more than willing to take his new car and credit cards elsewhere. Amanda comes over to check on Lily, but Sean changes his mind about leaving once he sees Amanda. Jackson wonders why Sean left his home, since he had it to himself, but Sean claims it got lame. Sean finds a shiny, dangly earring on the carpet and lays it on the coffee table.
Amanda goes to see Lily, who is looking for love online. Amanda tries to tell Lily that Jonathan loves her, but Lily still think they are too different. Amanda tells Lily that she and Jonathan they love each other and share many similarities. As Amanda continues to talk about Jonathan, Lily becomes upset. She throws a glass against the wall and screams for Amanda to leave. Jackson comes upstairs when he hears the noise and signals Amanda to go. They leave Lily alone and she starts chatting with users online. She gets a message from a chatter claiming to have autism, but the chatter is really Terry.
Amanda pleads Jonathan case, but Jackson refuses to listen. Amanda leaves and Jackson asks Sean to stick around for awhile. Colby comes over get the earring she left there at the party. Sean pulls the earring out of his pocket and Colby reintroduces herself. She invites him to her party and Sean accepts. Sydney calls Sean, claiming she left something at the house too and needs to pick it up. Sydney comes over, invites Sean to her party and says the necklace she left there is not important.
Erica goes to see Dixie, but instead, she finds Dixie and Zach in bed together. Erica explains that she saw them kissing on television last night, but had to see if the news was true herself. Derek comes in, asking to speak to Dixie and Zach alone. After Erica leaves, Derek tries to question the couple, but they won't answer anything without their lawyer. Dixie tells Derek to focus on finding her daughter, instead of accusing them of murder. She shoves the pictures of Greg's adopted children in Derek's hands, as Emma's face plops down on the floor in a photo. When Derek asks the couple why they didn't have an alibi earlier, Zach claims he did not want to ruin his marriage. Derek leaves without the answers he was looking for.
Kendall goes to work, surprised to see Jonathan there so early. When she asks about Lily, Jonathan tells her the truth about his medical condition and how he told Lily the truth to save her from being declared mentally incompetent. Jonathan explains that he lied to Lily because if she knew the truth, she would think they were too different to be together. He claims he is not sorry about what he did to Lily. Jonathan talks about how he and Lily would "touch" by holding a rag and at one point, she hugged him. Kendall tells Jonathan she believes he loves Lily and wants him to continue working at Fusion. Jonathan is surprised at Kendall's support. Kendall reminds him she would not be the first person to fall for a man who has made mistakes. Erica shows up, offering her support and forgiveness to Jonathan too. When Jonathan takes some of Lily's belongings to Erica's car, Kendall can see that Erica knows about Zach and Dixie. While Kendall claims the affair just happened once, Erica breaks the news that she caught the pair in bed less than an hour ago. Kendall refuses to believe it, but Erica thinks Kendall is better off without Zach. As Erica gushes about Ryan, Kendall interrupts her and walks off. She goes to Zach's office to spy on him in Dixie's room.
Annie frantically tells Ryan that Terry called her, threatening to take away Emma. Ryan tells Annie that one of Aidan's men is keeping a close eye of Terry, but Annie does not think that is enough. Ryan assures Annie she can trust him. Emma comes out of the work office, wondering why her mother is yelling. Annie tells Emma she is fine and sends her off to the daycare at Cambias Industries. Annie thinks that getting new identification might work, but Ryan wants Annie to stay as she is so they can catch Terry and put him in jail. Moments later, Annie receives a package, but Ryan opens it for her. Inside is a photo of Terry and Emma, along with a note from Terry. She takes the picture and throws it against the wall. In the end, Annie agrees to stay so she can nab Terry. Ryan gives her a hug and Erica walks in.
Amanda goes to ConFusion and updates Jonathan on Amanda's condition. Jonathan thinks all hope is lost, but Amanda urges him to fight for Lily.