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Tensions Mount in P.V.

At the police station, Adam tries to convince Erica to be his witness as Josh and Bianca try to keep her from saying anything. As Erica makes the decision to tell "the truth", Babe collapses! Josh tries to revive her and with the others occupied, Babe tells them to get Erica off Krystal's back so she can take Adam down! Tad pulls Adam from the room and threatens him, telling him that locking up Krystal and Babe isn't the answer. Adam challenges Tad to take Krystal off his hands by moving in with her himself! "Get that tramp out of my house and I'll never speak to you again," he promises. They go back to the squad room and Tad asks Krystal why she is insisting on staying with a crazy man. Meanwhile, Bianca tries to convince Erica not to side with Adam. Erica explains about Charlotte's paternity to tries to get Bianca on her side, but it doesn't work. Bianca tells her that siding with Adam will only result in the loss of everything Erica loves! Josh confronts JR, telling him that his machinations to sway Babe won't work. Babe interrupts them, telling them both to back off. She wants nothing to do with either of them! Josh tries to follow when she walks away, but Zoe cuts him off! JR heads for the insurance adjuster, telling him to back off from Krystal and Babe. Tad approaches, asking if JR is using Krystal's baby to keep Babe under his thumb! Just then, Erica comes back into the squad room, ready to make her statement! When Derek asks if she saw Babe and Krystal, she says no! "I saw Babe but I didn't see Krystal," she says, telling Adam that she can't be manipulated! Angry, Adam tells them that they won't get into his home ever again and storms out. Krystal thanks Erica but Erica isn't having it. "Did you even think about Tad and what joy the baby could bring him?" she asks. Derek disperses the group. Tad approaches Krystal, telling her that he will sue - and win! - custody of the baby. Angry, Krystal promises to fight him. Babe comes over and leads Krystal away. Erica approaches Josh, telling him that she lied for him but Josh only walks away. Zoe approaches her, asking Erica to give Josh space. Jackson interrupts with news for Erica. He is ready to move forward with their divorce!

Adam Goes On The Attack!

At the Fusion offices, Kendall and Bianca get back to work. Di arrives, telling them it's time to bring Fusion back to life! With only the three of them, Kendall is worried that they won't be able to complete the fall launch. Zoe arrives, offering to help them out. Kendall isn't sure if Zoe should come on board, what with her rock-n-roll job, but Zoe is ready to work. Still hesitant, Kendall asks Bianca for a private meeting. Bianca can't believe it when Kendall says she is worried that Binks might be falling for Zoe! Binks tells Kendall she wants Zoe to work with them because they need help - no other reason! "This is ridiculous," she says but when Kendall tells her Zoe was glowing just like she was, Bianca begins to question her own thoughts. Binks tells Kendall to stay out of her life, but Kendall won't let things drop. When Kendall tells her Zoe doesn't fit in, Bianca becomes angry and threatens to quit! Seeing that Bianca is serious, Kendall gives in. Josh arrives, telling Zoe and Di that he is there to help with the launch. He asks if Di has heard from Babe; she hasn't. Josh then turns to Zoe, wondering why she let Erica into the apartment. Zoe tells him to give Erica a break, she would give anything if her mother cared for her as much as Erica cares for Josh! Kendall and Bianca come out of their meeting, telling Zoe that she is hired! Binks and Zoe begin working as a reporter arrives, telling them about Babe and Krystal's arrest! Bianca and Josh hurry away. Annie arrives a few minutes later, offers her resume and asks for a job. "You need marketing people and I'm qualified," she says. Kendall asks about her wedding plans and if that will interfere but Annie tells her there isn't going to be a wedding! Surprised, Kendall hugs her.

At the police station, Krystal apologizes to Babe as JR comes in with Jackson. Jack asks about the charges and an insurance investigator explains: Babe took out a million dollar policy with Krystal as the beneficiary and Krystal signed the petition form after her "death" to get the money. Since Babe is alive, they believe the Carey women were trying to defraud the company! Adam arrives and Krystal explains that Adam had her sign several papers but that she didn't know the insurance form was one of them - or that Babe was alive when she signed it! Jackson tells Derek to let them go because without a witness, Krystal signing the form means nothing. Just then, Erica arrives! Derek asks what she saw as Jackson and JR try to coach her into saying nothing. Rather than answer, Erica asks to speak with Adam, alone. JR jumps in, telling Erica not to let Adam use her. Tad arrives, backing them up! Jackson pulls Babe away, asking why she didn't just come out of hiding when Alexander was caught and she admits she was thinking about leaving town - with Josh! JR talks with Babe, who is appreciative of his help but wants him to know that this isn't going to change her mind about the divorce. Across the room, Tad asks Krystal to sit and eat. Krystal wonders what this new side of Tad is about and he assures her that he doesn't care about her - he cares about their baby!

Outside the squad room, Adam tries to convince Erica to take his side about the insurance fraud. "What better way to Babe-proof Josh than to send them away for a long, long time?" he asks. They return inside and Erica goes on the attack against Krystal. Krystal isn't backing down, though, and tells Erica that even pregnant she can take her! Josh, Bianca and Zoe arrive as Derek asks Erica for an answer - did Krystal plan to defraud the insurance company?

The Truth Hurts!

At Josh's apartment, Zoe invites Bianca inside. They share champagne and Zoe pulls a cake from a box. The two feed one another, but Zoe nearly spoils the mood when she asks about Maggie. Bianca she tells Zoe she has no plans to go back to Paris because Maggie's cheating killed their relationship. Zoe tries to be understanding as Bianca talks about wanting to forgive Maggie and not being able to. She reaches out to Zoe telling her that watching how she has dealt with things made Bianca want to be stronger herself. She reaches over to wipe some chocolate off of Zoe's face and the two nearly kiss! Josh arrives, interrupting them. He is upset that Babe left the casino with JR! Binks asks if he set this "honesty policy" in effect on purpose and he admits that he goaded Krystal into the dropping the bomb. "Babe can't have a life with this hanging over her head," he says! Bianca tries to show Josh how his actions were exactly like Erica's - he pushed Krystal for his own benefit and not her own! Josh doesn't see it that way; he believes he only gave her a choice. "And if Krystal leaves, Babe and little A will be right behind her," he says, thinking he did them a favor.

Adam Learns The Truth

In the sub-basement, Zoe arrives to see Babe. Bianca leaves to check on Miranda and meets Josh outside the room. Josh has mixed feelings about everyone knowing Babe is alive. Bianca tries to show Josh that running wasn't the right option, but Josh doesn't want to listen. Telling him that he needs to trust Babe's choices, Bianca tries to make Josh see that he can't rescue Babe unless she wants to be rescued. "You can't drag her out of town if she doesn't want to leave," Bianca says. Inside, Babe asks Zoe what really happened in the cemetery with JR. Zoe tells her she is over it and not to worry and then tells her about the transgender meeting. "I was so scared I thought I was going to throw up," she says. When the people embraced her, though, she began to feel like everything would be okay. Bianca comes back in, Josh in tow. Zoe kisses Josh, thanking him for saving Babe's life. Binks and Zoe leave so Babe can get ready to go.

Bianca and Zoe go to the Valley Inn to have drinks. She informs the staff that she is now Zoe, not Zarf. Barbara arrives with Sean and recognizes Zoe. She believe, though, that this is only a stunt by the rock star. "Still acting out I see," she says to Bianca, who is mortified by Barbara's words. Sean tries to get Barbara to leave, but she grabs Bianca by the elbow and pulls her from the bar. Uncomfortably, Sean talks with Zoe for a moment. Colby calls, asking Sean to come to the mansion. In the lobby, Barbara tells Bianca that she is concerned about her. Bianca becomes angry because she knows Barbara doesn't care about her. She calls Barbara a bigot. "I didn't expect the first stupid, insecure person in my life would be you," she says and returns to Zoe's table. They toast one another, giggling.

Not So Fast, Dad!

In the sub-basement, Bianca tells Babe she wants to start over. "I forgive you, for everything," Bianca says. Touched, Babe begins to cry. She can't believe what Bianca is saying because starting their friendship over again is exactly what she wants, too! Babe asks for Bianca's opinion on JR's change of heart. She wants to believe in him, even though she doesn't plan on going back to him. Bianca warns Babe that JR's changes may not last and tells her about the attack on Zoe and how JR reacted. "So much for JR's redemption," she says. Babe can't believe it, and Bianca assures her that Zoe is fine now. She also lets Babe know that JR apologized to Zoe for what happened, and she believes that he meant every word of it. But, Bianca isn't sure how long his remorse will last or what will happen when the old JR shows up again. The words reinforce Babe's own feelings that things may not be as rosy as they appear. She begins to think about the future and wonders how she can get JR to keep quiet about Krystal if she manages to gain custody of little A.

Good News Travels Fast

At the Miranda Center, Bianca and Zoe are going over some plans when Jeff arrives. Bianca apologizes to him for reacting badly to his relationship with Erica, but Jeff shrugs off the apology and gets to work with the volunteers. Binks turns back to her work with Zoe. Zach arrives, sees Zoe and offers his unconditional support for anything that she needs. Zoe thanks him and leaves the two alone. "How do you make sure that the past never touches Miranda," he asks when they are alone. Bianca is surprised at the question and about the turn of events with Alexander. She assures Zach that as far as the past goes, she thinks of Ethan and Ryan and Zach when she thinks of Cambias - not about Alexander and Michael. Whatever he decides about the company, she will back him up! Rachel arrives with Miranda, Emma and Kathy in tow. Zach hugs Miranda quickly and sends her off to play. Binks tries to get Zach to look to the future instead of focusing on the past; if he can do that, she believes he can make something wonderful from Cambias. "I believe in you," she tells him. Zach kisses her forehead and leaves. Erica arrives a few minutes later and asks Bianca to leave with her. When Bianca refuses, Erica tells her there is a problem with Josh, but Binks doesn't take her seriously until Erica tells her that Babe is still alive! She is stunned to learn that it's true and that Josh has been hiding Babe for weeks! Erica begs Bianca to help her, but when Zoe comes in Bianca is too excited about Babe being alive to focus on her mother's problems. Zoe is speechless when she learns the truth and leaves to tell Amanda the good news. Jeff comes in and overhears Erica again asking for Bianca's help with the situation. He can't believe what he is hearing and neither can Bianca. Without answering her, Bianca leaves the room. Jeff confronts Erica, telling her she may have lost Josh for good this time! Rather than listenting to him, Erica turns her anger and frustration on him!

The Future Is Bright

At the hospital, Zoe attends her first transgender support group meeting. The other group members are surprised that "Zarf" is joining the group but are accepting. Zoe sits back and listens as the group members introduce themselves, as she hears their stories Zoe sees a part of herself in the different men and women. She explains that she created Zarf to hide her real self. Jenny, the group leader, asks why Zoe didn't think she was lovable. Zoe talks about dressing up in her mother's clothes and her father ripping them off of her. That relationship made her afraid of how others would react to her. Jenny begins talking about the support system that they will all need though the process. Zoe talks about Bianca's support. "Maybe it is love that will help us become who we are," Jenny says. The group dismisses and Zoe comes out to talk to Bianca. "For the first time in my life I realize I'm not alone," she says.

At home, Kendall is about to jump out of her skin - the pregnancy test is positive! Bianca arrives and Kendall shares the news. Binks can't believe it. Both are very excited. Kendall sees the pregnancy as a gift - after all of the hard times, this is her reward! She is excited to tell Zach. Nervous because he will be home soon, Kendall asks Bianca what she should wear to tell him about the baby. He arrives before she can do anything and Bianca makes a quick exit. Kendall reaches into a bag and hands a curious Zach a cigar. Zach isn't sure what is going on but plays along with Kendall as she drops words like "cravings", "expecting" and "delivery". She tells him she wants a bigger house but a a messenger arrives with an envelope before she can share the news. Zach opens the envelope and explodes in anger!