Jack went to the police station and announced he was going to be Jonathan's lawyer. Ryan and Jonathan were confused, so all three of them went into Derek's office to talk. Jack said Jonathan saved Lily from being raped, so he wanted to help him get out of the charges. Ryan was very apprehensive. Ryan accused Jack of wanting to blow Jonathan's case on purpose. Jonathan then asked Ryan to leave and he did. Jonathan yelled at Jack for not believing in him and Lily as a couple. He stated that Jack made his life miserable. Jonathan assumed Jack wanted to do this to unload his guilt. Jack apologized and turned to leave, but Jonathan told him to wait. Jonathan said everyone deserved a second chance. And, since Ryan was no longer with them, Jack posted Jonathan's bail. Jack said he would send the bill to Ryan. He then asked Jonathan to go see Lily. Jack said Lily had hidden herself so deep that Jonathan might be the only hope of getting her back. Jonathan looked shocked.
Kendall was also at the police station. She was looking at her wedding ring when Dixie walked in. She told Dixie that Zach's arrest was her fault. Kendall accused Dixie of sucking people's lives dry. Dixie said Kendall's failed marriage was no one's fault but her own. Dixie called Kendall a selfish bitch that would not trust her husband. Then, Derek walked up and asked Kendall if she was ready to confess that Zach and Dixie's alibi was fake. Dixie said this was the opportunity Kendall was waiting for, but Kendall did not tell Derek anything. So, Dixie went down to see Zach in his cell. Zach was staring at his bare ring finger. He saw Dixie and told her to leave. He said everyone in Pine Valley was a rat that wanted to hide their mistakes. Zach then asserted it was over for him and started to throw the desk and chair in his cell. Upstairs, Ryan and Kendall were talking and they, along with Derek, heard the disturbance Zach was causing. They all rushed to Zach's cell. Zach saw Kendall with Ryan and accused them of having an affair. Zach then threatened Derek and reached out for him, but an officer subdued him with a taser gun. Kendall was worried and kneeled beside Zach as they tied him up. When Zach awoke, he saw Kendall and told her to leave. He also yelled at everyone else to leave. Kendall asked Ryan to get her out of there and he brought her upstairs. Ryan then hugged Kendall as she cried. Dixie, however, did not go upstairs. She went to Zach's side and put her hand on his shoulder. He smiled and touched her hand.
Lily was still comatose in her hospital bed. Julia told another nurse the details of Lily's case. Meanwhile, Lily was in the safe place in her mind. She tried to calculate numbers, but Julia's voice was distracting. Lily saw a door and went through it. After she shut the door, there was no more noise. Then, Amanda came to see Lily. Amanda said Jonathan still loved her. She told Lily to come back for Jonathan. Soon after, Jonathan walked in. Jonathan just looked at Lily.
Adam was at the yacht club. He asked the Coast Guard if they found Colby yet, but they still had not. Everyone was worried she might be dead. JR was at home making phone calls to see if there was any news on Colby. He told Babe Colby was a spoiled brat. He was very upset she was driving the boat. Babe said Colby was just a kid trying to fit in. Meanwhile, a disheveled Colby walked into the living room. She listened in on Babe and JR. Then, a police detective came to the mansion. The detective wanted to interview Sydney about the boat crash. JR said she was not home yet. The detective explained that Colby was in serious trouble and might be facing a lot of jail time. He also stated the injured kids on the boat would probably sue the Chandlers for a ton of money. After the detective left, JR and Babe went to the yacht club. Colby was left stunned. Then, Sydney came home with Sean. Sydney had her arm in a sling and was crying. She was upset that Colby might be dead. Sean said death was a fact of life and that Sydney should just deal with it. Sydney called Sean cold. She believed Sean should be more caring because he hooked up with Colby. Sean said he did not care and left. However, Sean then went to the yacht club and cried. Colby overheard Sydney and Sean. She pictured her and Sean hooking up on the boat. Colby seemed very upset and leaned against the wall. Then, a door to one of the secret tunnels opened. Colby went inside and cried. Meanwhile, JR and Babe arrived at the yacht club. Babe watched as Krystal comforted Adam. Adam told Krystal he would not know what to do without her. Then, JR told Babe that the rescue mission would turn into a recovery mission at noon. Babe offered to help JR look for Colby, but he denied her. JR said he did not need a babysitter and kissed her goodbye. Babe looked hurt and went to Fusion. When she walked in she saw Josh. Babe immediately walked up to Josh and embraced him.
At Fusion Josh promised Babe anything she needed. Simone was quite catty with Josh and Babe as she reminded them of their personal problems. Babe told Josh that this all had to stop but he said he couldn't stop loving her. Kendall, Dani, Babe and Simone lamented about relationships and men and all the complications that follow. Simone spoke of Ethan and said that if she ever found a man half as wonderful, she would latch on and never let go. Ryan then came in and took Kendall to the rooftop and told her that all was well with Jonathan. Kendall was glad and Ryan asked to spend the evening with her. She said yes.
In Derek's office, Ryan tried to convince the DA that he was shot by accident. Jack called Derek out, but he told Jack that he had to have proof that Terry was a pervert to drop the charges. Derek read the emails transmitted between Lily and Terry and yet the DA still maintained that there was not enough to let Jonathan and Annie go free. Jack made an impassioned speech and the charges were dropped against Annie and Jonathan.
In the hospital, Jonathan sat at Lily's bedside and told her that she was safe and it was safe to come back. Jonathan continued to talk to Lily reminding her of happier times, but there was no response. He left for a moment and when he returned he had a CD with her favorite music. Jack returned and told Lily that Jonathan would not have to stand trial after all. Lily awoke and asked for Jack, but wanted nothing to do with Jonathan. He left and vowed he would never bother Lily again. Jeff and Erica spent some time together getting reacquainted.
Tad went to see Krystal at the Chandler mansion. Krystal was not happy to see him. Tad wanted to see how JR was handling Colby's accident. Krystal said Tad should really be concerned about how JR was dealing with Tad testifying against Dixie. Tad explained he did not want to testify, but had to because Derek bugged his house. Krystal still believed it was Tad's fault because he acted like he had a secret and Derek followed up on it. Krystal was most concerned that Dixie might seek revenge on Tad by telling Adam about their affair. Tad reassured her Dixie would not tell. Meanwhile, Colby was trying to listen in. She only heard Tad and Krystal say they had a secret, but did not know what it was. Colby continued to listen and heard Krystal profess her sincere love for Adam. Tad was shocked at first, but eventually accepted it. He then asked if there was anything else Krystal needed to tell him. Krystal looked nervous, but stated there was nothing else to say. Tad asked Krystal to tell JR he stopped by and then left. Then, Colby knocked into the wall and Krystal heard the noise and looked suspicious.
Josh realized that Babe was firing him. And, JR was eavesdropping and looked very happy. JR walked into the office and immediately hugged and kissed Babe. He then pulled her aside and told her there was still no news on Colby. Babe said she had a lot of work to do, but would leave to help JR. JR reiterated that he did not need Babe. Babe was upset and believed JR was affectionate with her just to bother Josh. JR asked her not to start and walked over to Josh. JR gloated that Babe fired him and said he meant nothing to Babe. JR went downstairs to ConFusion, while Josh confronted Babe. He told her JR did not appreciate her and that he would do anything to make her happy. Babe said she loved JR, but still wanted to be friends with Josh. Then, they got back to work. They exchanged glances and touches as they worked close together in front of the computer. Finally, Babe and Josh kissed passionately!
Ryan, Kendall, and Jonathan were celebrating together at ConFusion. They were celebrating the charges being dropped against Jonathan and Annie. Ryan then told Kendall he was going to try to convince Annie to stay in Pine Valley. Kendall did not look happy and ordered more champagne. Jonathan then announced he was moving on from Lily. He proceeded to flirt with girls in the bar. Del saw this and told Jonathan he was sorry about Lily. He also said he knew twins that would make Jonathan feel better. Amanda heard this and yelled at Del. She said Jonathan was a good guy and would not hook up with twins since he was still in love with Lily. Del realized Amanda liked Jonathan. He told Amanda to go for someone with less baggage, like him, but Amanda denied Del immediately. Julia and Di were also in the bar. Just as Julia discussed her breakup with Jamie, Jamie came in and surprised her. He stated he did not go to Europe because of Julia. Julia and Jamie then spoke alone. Jamie assumed they would reunite, but Julia informed him it was over. Jamie was surprised, but said he had no hard feelings. Meanwhile, Kendall was having a good time. She was showing everyone pictures of Spike and doing tricks at the bar. Then, she ran into JR. They began to fight over Zach and Dixie. Ryan stepped in and told JR to leave, but he would not. Jamie and Amanda then came and took JR away. JR yelled at Amanda for not doing a better job of distracting Derek at the police station. He blamed Dixie's situation on Amanda and told her she was mommy's little monster. Jonathan heard this and took Amanda away. He told her she could rely on him if she needed anything. Meanwhile, Jamie said it was not Amanda's fault. He asked JR to calm down and said Julia dumped him. JR thought it was just a fling, but Jamie said it was more. And, Julia was on the other side of the bar with Di. Di asked why she broke up with Jamie. Julia said she missed and loved him, but could not be with him. She did not think he was ready for a serious relationship. At this point, Kendall and Ryan were on the roof. Kendall said JR reminded her of how Zach chose Dixie over her. Ryan said Zach did not deserve Kendall. He believed Kendall deserved someone that would love and respect her. Kendall looked at Ryan and said she wanted to love him.
An undisclosed identity was spying on Kendall and Ryan's condos!
A stunned Ryan asks Kendall to clarify her voiced desire to want to love him, but she doesn't believe she can make things any simpler than that. Ryan tells her that love, for them, has never been simple. Kendall thinks that he is backing away from her but he tells her that he is actually giving her a way out. She asks what his reaction would be if she didn't want a way out. Ryan tells her that a cautious man would tell her, in a moment like this, that he didn't want to be played. She promises that she isn't playing games, and then tries to use natural occurrences as excuses for her current behavior. Things turn serious, and Kendall explains that since his return, Ryan has been there for her and their son - and that she now wants to be his rock. Ryan tells her it's a given, because they share a son - but Kendall reminds him that he would never put his family at risk. His nobleness and honesty convince her that nothing else could be true. She tells him that she wants to devote herself to him and give her heart to him, and although it is what Ryan wants to hear - he notes that she doesn't feel that way for him, and that no amount of wishing and hoping will make it so. She tells him that he could be wrong, but he asks her to hold her thought rather than expounding on her dreams.
They arrive home a short time later to find their son sleeping peacefully and the nanny taking care of him. They go into her condo, and plan to open a bottle of wine and visit some more. Before they can, Ryan steps out into the courtyard and pulls Dixie out of hiding, and into Kendall's disgusted view. Dixie claims that she came over to retrieve some of Zach's items to bring to the jail, but neither Ryan nor Kendall believe her. Kendall demands a list, but when she is met with silence, she caustically notes that Dixie is nothing more than a freak. Ryan asks for the real story, and Dixie admits that she was hoping to find evidence that Kendall was betraying Zach. They call her out on her malicious behaviour, and Kendall demands that Dixie leave her house. Unwilling to go without a fight, Dixie tells them that even though the man that loves Kendall was lying on the floor of a prison cell, bleeding and handcuffed to a bed, Kendall still couldn't be there for him. She wanted to have something to take back to Zach that would prove that Kendall wasn't worth the trouble. Incensed, Kendall dares Dixie to explain how she is any better, and Dixie counters by saying that while it's not against the law to love two men, it is to have two husbands. Giving Kendall's secret desire a name silences both Kendall and Ryan momentarily. Then Kendall, not able to tolerate seeing Dixie anymore, announces that she is going across the courtyard to check on her son and that Dixie had better be long gone before she gets back. She storms out the door, and once it slams shut, Ryan asks Dixie why she is wasting her time and her freedom giving Kendall such a hard time. Dixie replies that it's not her fault that Kendall can't face reality. Ryan tells her that Kendall has been 100% faithful, and that the reality is that the game of who is gonna get the guy will stop - now.
At the Fusion offices, Josh and Babe briefly give into the desire they have been fighting with a series of kisses before Josh tells her that he has never felt the kind of love that he feels for her before. Silently accepting his admission, Babe leans in to kiss him once again. Josh then tells her that he wants to love her every day and night for the rest of his life. He tells her that his heart is owned by her, and that the only thing he would ever need in his life - is her. At that, she steps away, considering what line they crossed. He tells her not to say anything, so she doesn't. She merely caresses his face, and then starts to walk away. She gets into the elevator and reluctantly lets the door close between them.
Down in ConFusion, JR finds out that there are no new leads in the search for Colby. He slams his cell phone closed in frustration, and Jamie promises to make good on his threat to break his brother's hands if he orders a drink. JR tells Jamie that he is clueless about being a drunk, or alcoholism - because broken hands wouldn't stop a drunk from imbibing. Jamie revises his threat, saying that although he hates just as much as his brother ever could, if JR falls off the wagon, Jamie will root for Josh to steal Babe away. JR insists that his wife will stay with him because he has no need for a drink. Jamie lists all of their current problems with family as evidence that JR is under stress. Di joins the effort, but JR is incensed that she and his brother think that he needs some sort of guardian. He tells them that he is going to leave, and Jamie, thinking that it is a good idea, says that they should go play basketball. JR, wanting to be alone, storms off. On his way out, he runs into Josh. They have a brief, silent face off but JR opts to leave without incident, possessing a smug look on his face. Having observed the near confrontation from across the bar, Di and Jamie are thankful that things didn't go as badly as they could have.
Josh takes a seat at the bar and orders a drink. He spots Julia a few feet away and in seeing her, he is prompted to start harassing her about her love life. She deflects his insults deftly, and when he realizes that she won't rise to the bait this time, she slides over and asks him if that's the tactic he uses when he is trying to ignore what is really making him crazy. Josh posits that perhaps the reality is that he is a jerk, or that she and Jamie weren't meant to be together. Julia quickly concludes that although there are some roadblocks that can be overcome, there is nothing worse than loving a person that doesn't love you back. Josh sees her reasoning, but ups her one: loving someone who loves someone else.
Babe arrives home to find Krystal trying to convince Winifred that she heard something in the walls. While Winnie doesn't hear it, she doesn't doubt that there is a source to the noise. She stops Krystal from opening the nearest entrance to the tunnels in case there are any kind of pests to blame. She then offers to call exterminators, but Krystal tells her that their presence is the last thing needed in a house with a young boy. Winnie takes her leave, and Babe fills her place, confirming that there is no news about Colby. Krystal expresses concern at Babe's flushed state but Babe writes it off to worrying about her young sister-in-law. Before her mother can ask anymore questions, Babe announces her plans to go upstairs and be with JR. Krystal tells her that she isn't sure she saw him come in, so hoping for the best, Babe exits the living room. She returns a short time later, frantic that she can't find her husband. Her mother isn't convinced that Babe's distress is all about JR, but Babe refuses to give up any additional information. Instead, she checks in with Krystal to see how she is holding up under the strain. As Colby listens from the tunnels, Krystal admits that she isn't sure how she is going to keep Adam from collapsing under his grief if Colby isn't found. Babe reveals her confidence in her mother's comforting skills, as she saw how Adam let her in when they first got the news that the search was coming up empty. Krystal tries to pinpoint what Babe's motivation is in saying such nice things about her marriage, but before she can come to any conclusions, her cell phone rings. She finds Adam on the other end and discovers that although JR isn't with him, Adam is doing everything he can to bring his youngest child home. Moved by the devotion, Babe takes off without saying goodbye, in an effort to find JR.
A short time later, Sydney joins Krystal in the living room and notes that she was hoping that Colby had returned home safely. She then tells Krystal that while she would never want Colby to be dead, she has a hard time being around her because of the way Colby looks down on her. Krystal blames that on Colby's unique way of relating to people, and that she shouldn't take it personally. Before they can get any more in depth, JR arrives home and Krystal excuses herself momentarily. She goes into the foyer and after he tells her that his plan is to shower and then go out to the marina to help his father in the search, Krystal asks to talk to him before he goes. He heads upstairs and Krystal and Sydney reconnect, with Krystal trying to explain how Colby could have so much and still be so insecure. Krystal informs the teen that Colby went without all of the things that Sydney is jealous of - the money, the house, the car, a family who loves her - and explains that Colby isn't sure whether or not all of those things are hers for the long haul. She goes on to say that Colby can't be generous with the things she is not sure she can hold on to. JR returns to the ground floor, catching the tail end of Krystal's advice. He prepares to leave anyway, but Krystal catches him out of the corner of her eye and demands that they talk before he leaves. Before she can get a word in, JR blasts her because he believes that she was asked to talk to him about how he seems to be close to falling out of sobriety and into an alcoholic drink. She tries to deny it, but he tells her what he told Babe - he doesn't need a babysitter. Taken aback, Krystal voices her hope that JR didn't use the same tone and language the last time he talked to his wife. He indignantly asks if she feeds her self-righteousness to Babe since he hears just about the same thing coming from his wife all day. He tells her he doesn't need it and Krystal notes that perhaps with his attitude that showing love to the woman in his life is a weakness, he doesn't need anything. He tells her that what he needs is to find both of his sisters and for his mother not to be heading to jail, but since none of those things seem to be happening - they only serve as proof that he indeed needs nothing. Krystal reminds him of how he met Babe, and how when she was at her lowest point, she gave him the only thing that she had - her heart. She needed him to need her, and when he accepted, it was the best thing that he could have given her. The fact that she is reaching out to him now only to have him swatting her away is telling Babe that he no longer needs her. JR tries to break away, saying that her stream of psychobabble is making him ill, but she restrains him momentarily, telling him that everything she said is true, and that he needs to start believing it.
At ConFusion, Babe confides in Amanda, wondering why JR can't open up to her. Amanda understands her every step of the way, saying that men would rather gouge their eyes out than open up and share their most vulnerable selves. Babe, knowing that Josh did exactly what JR seems incapable of, gets lost in her thoughts.
Upstairs, Josh packs up the things that he has collected in the office and soon spots an ad featuring Babe's photo. He opts to stare at it longingly, still wanting the one thing he seemingly can't have. He tosses the ad into his box, turns off the light and starts to go. The elevator door opens and Babe reenters the office. Josh sets the box down as their eyes meet and hold. She slowly approaches him, and once again - they kiss.
Across the bar, Di finds Jamie and asks if he knows where Aidan is. He doesn't but inquires as to why she needs him. Di lets on that Aidan promised to help her prove that Tad is lying about what he saw the night Greg Madden was abducted. Jamie asks how she can be so sure that Tad is the liar and not Dixie, and without any solid proof - all Di can offer is that she knows her sister is innocent. Jamie takes offense, and she explains that after what both she and Dixie put him through, she can understand why Tad is so messed up.
Erin finds her brother behind the bar and tries to see how he's doing. Jonathan tries to put her off by saying that he's doing fine but she doesn't let him get away that easily. He finally gives in a little and tells her that he is doing the best he can under the circumstances. She suggests that he take a few days off and offers to cook him all of his favorites. Appreciating the effort, Jonathan turns her down, saying that he likes the atmosphere in the club. Looking at him with sympathetic eyes, she tells Jonathan that he will find his new life soon and that everything will work out. He asks her to not be his supportive sister right now, preferring her funny cool side. She agrees, and offers to buy him a drink.
Moments later, as many of Pine Valley's familiar faces witness, Dixie enters ConFusion.
Across town, Ryan and Kendall have a glass of wine in front of the fireplace as he apologizes about her night being ruined. She tells him that he was wrong - that she does have love for him, and lays a kiss, years in the making, gently on his lips.
After Kendall and Ryan say they love each other, Ryan tells Kendall he wants to make love to her, but if she agrees, he will fight to have her for the rest of his life. He will no longer just see her as the mother of his child. Kendall gets up and stands outside, trying to figure out what to do. Moment later, Kendall comes back inside and apologizes for walking out on Ryan. She tells Ryan that she loves him, even though she isn't sure how or when it happened. Kendall tells him she needed time to clear her head so she ran outside to figure out what the consequences of her actions would be if she made love to him. Kendall admits she is furious with Zach for lying to her, but now, the choices she makes will affect their son. She tells him that she will not be with Ryan, unless it is the real thing, because it may hurt Spike. Kendall admits that she loves Ryan and Zach, but part of her hopes there is still a chance to save her marriage. Ryan says that he wants to be with Kendall, but only if she wants to be with him for the right reasons. If he never gets that chance, Ryan says he will be OK. Kendall goes to get Spike from Ryan's house so the baby can stay the evening with her. Ryan says good-night as Kendall tends to Spike.
Josh confesses his love to Babe and asks her if she wants to be with him. Babe tells him yes and asks that he makes love to her. Josh whisks Babe away to the top of the roof, where he tries to fulfill her tropical paradise fantasy with a kiddie pool and pouring water over her head. Babe laughs in delight and kisses Josh.
At ConFusion, Jamie interrupts Di and Dixie so he can ask Dixie if she killed Greg. Dixie tells Jamie she and Zach did not bury Greg, but can't explain the evidence that has been brought against them. Jamie tells Dixie that he does not know how to handle her going to jail, but Tad walks up and asks Jamie to stay out of it. Jamie gets upset and walks past Julie, who tells Di that even though they broke up, she still cares about Jamie. Dixie taunts Tad for turning Jamie against her, but Tad walks away when JR and Di tell him to leave Dixie alone. Tad tries to make things right with Jamie, but Jamie can only see how Tad has betrayed Dixie.
As Josh and Babe make love, JR talks to his father over the telephone about Colby's whereabouts. When JR offers to help with the search, Adam says JR should spend time with his family instead. JR goes to ConFusion where he finds Jamie drowning his anger in alcohol. JR goes to check on Dixie, who tries to comfort him while Colby is still missing. When Dixie suggests JR go upstairs and be with Babe, he finds Babe's clothes scattered on the floor.
While Colby hides in the secret walls, Sydney tells Winnie that wants to go home. Winnie tells Sydney that her mother has a new job, which will require lots of traveling for the next six months. Winnie says Sydney's mother wants her to stay in Pine Valley, but Sydney thinks her mother doesn't want her anymore. Winnie tells Sydney to go to bed so they can discuss it in the morning. Colby sneaks out to grab some snacks, but is caught by Sydney.
Annie goes into ConFusion with Jamal, but rushes over to thank Jonathan when she sees him. She tells him that he is a good person, no matter what anyone else thinks. Annie asks how Lily is doing, but Jonathan avoids the question by offering to buy Annie a drink. While Jonathan makes a drink, Erin tells him she does not think he is handling Lily's rejection the right way. Jonathan asks Erin to leave the issue alone and walks off. Jamal tells Erin that she should not worry so much about Jonathan because he can take care of himself. Annie asks about Jonathan's relationship with Lily, but tries to make Jonathan see that he helped Lily by getting rid of Terry.