Zach comes to terms with Kendall's news. Word of Babe's "recovery" spreads like wildfire.
At Josh's apartment, Erica tries to get Tad on board with her plan to find out what JR is blackmailing Babe with. He wants to know why he should look. Does Erica want the information to conduct her own blackmail campaign, he wonders? "Why are you so determined to get ammunition to get her out of Josh's life?" he asks. Erica explains that the only thing that bothers her about Babe is that she can't make up her mind between Josh and JR. Knowing what JR is holding over Babe could help her protect Josh, she reasons. Tad doesn't buy her explanation for a minute, and refuses to go along with her plan!
At their home, Zach is stunned by Kendall's pregnancy news. He isn't sure whether he should be happy or upset because, ultimately, he is afraid of fatherhood. Kendall tells him he is wiser now than he was before and reassures him that Alexander cannot touch them ever again. She believes he will be a great father to their new baby because he is already a great dad to Spike! "No one will ever come between us and our child," she says as Zach quietly thinks about this. Finally, he smiles and kisses her, telling her that he wants to be a father. "I love you. I love Spike. I love Baby X," he says, but he is adamant that he won't take over Cambias! Kendall wants him to reconsider, believing that Zach should take over the company to defend what Ryan and Bianca made of it and to keep it from Alexander's plan. Zach doesn't want anything to do with anything that his father touched, though. "But you can make it your own and you can make it amazing," Kendall tells him, suggesting that his taking over Cambias is the perfect revenge against Alexander! Zach isn't sure if he can do it and tells Kendall he needs a little time.
At Wildwind, Ryan repeats his big question to Annie, telling her that she makes him crazy. "What about love," she asks him. Ryan tells her that he hasn't talked about love because he didn't want to pressure her into anything. He begins telling her how well they work together and how many things they have in common, but he doesn't tell her he loves her. "We fit, you know we do," he says. Annie brings up Kendall. Ryan tells her that Kendall isn't in the equation. "This is not a rebound," he assures her, telling her that he wants to spend all of his time with her. Ryan kisses her and leaves as Jonathan comes in the room. Curious why she hasn't accepted the proposal, Jonathan asks her why. Annie beats around the bush, wary of Jonathan telling Ryan that she is completely in love with him. Jonathan tells her that is why she should say yes - because of love! As far as Ryan not saying the "L" word, Jonathan sees that as a good sign. "Get a clue," he tells her good naturedly.
At the Cambias offices, Ryan is spreading the word that he will not be with the company much longer. Kendall arrives, asking for his help in convincing Zach to take over. "Please help me make this happen," Kendall says. Ryan doesn't think he is the best person to convince Zach of anything and tells Kendall to take care of things herself. Jonathan arrives, but he doesn't see Kendall. Before Ryan can say a word, Jonathan asks what he can do to make Annie say yes to Ryan's proposal!
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!

In the sub-basement, Josh comes in dressed as a doctor and tells JR to leave. Rather than reacting with anger, JR thanks Josh for saving Babe's life, stunning both Josh and Babe! Josh orders him to leave again, not believing that JR is serious. JR turns to Babe, trying to make her see the changes in him. Babe is obviously touched but has no idea how to react. "I have my wife back!" he says. Josh asks Babe how she feels about this new development, trying to force her to choose between them. "Neither of you has me and I plan to keep it that way," she tells both of them as Tad comes in the room. He kisses her and holds her hand. Babe asks Tad and Josh to leave but Josh hesitates. He doesn't want to leave her with JR. When Babe insists, he leaves with Tad. Alone with JR, Babe asks if this is all an act to set her up and JR says no. He really has changed this time! "You'll turn on me again," Babe says, sure that though JR may have changed, the change can't last. "You'll find a way to hate me again." JR takes Babe's hand, trying to reassure her about their future together. "It's my turn to convince you we're worth fighting for," he says. Meanwhile, in Josh's casino apartment, Tad demands that Josh fill him in on JR's blackmail attempts. Josh reveals that he and Babe were planning to run to escape JR, stunning Tad. He doesn't tell Tad about the blackmail secret, though. "You can't help, so drop this!" he exclaims.
At the Chandler mansion, Josh confronts Krystal believing she is the reason that JR found out about Babe! Tad watches the two from the courtyard!
At the police department, Zach asks to see Alexander. He stares through the bars for several moments without saying a word.
Next on All My Children:
Babe and Bianca come to terms with their past and future; Adam asks Krystal to tell him the whole truth. Kendall tells Ryan she is fine with his new romance - but is she really?

