James and Donna break into Dr. Jacoby's office and find half of the heart-shaped medallion and an audio tape in a hollowed-out coconut. Meanwhile, Jacoby stealthy approaches the gazebo where he is supposed to meet Maddie disguised as Laura. Seeing her while hidden in the bushes, he stands dumbstruck for a moment, unable to believe his eyes, but as he is about to call out to her, a man in a balaclava and a trenchcoat suddenly approaches him from behind and beats him mercilessly. James and Donna turn up to pick up Maddie, causing Jacoby's attacker to flee the scene when he hears them approaching. Knocked to the ground, Jacoby sees "Laura" leaving with her friends, but winded from the sudden assault, he cannot move or cry out, and he stares into the sky as he suffers a heart attack.
At One-Eyed Jack's, Cooper is playing blackjack with Jacques, showing him the broken chip and introducing himself as Leo's financier. They talk over some drinks, and Cooper makes Jacques drop his guard down and questions him about the events that happened during the night when Laura was murdered; Jacques reveals that Laura was indeed with him and Leo that evening and that it was Leo's idea to make Laura take a bite of the poker chip. Cooper eventually instructs Jacques to meet him at the water processing plant in two hours. Harry and Andy arrest Jacques as he arrives at the designated spot. He attempts to escape and shoot Harry in the back, but Andy injures him first in an impressive display of marksmanship.
Audrey is brought into the manager's office where she is told the owner is coming tonight and may as well choose her to be his next girl.
Maddie and her friends listen to Laura's tape where she's talking about some mysterious man whose name shouldn't be mentioned and who satisfied her completely, albeit she drops a hint about his identity by mentioning a red Corvette. Doctor Hayward leaves and tells Donna to check on her mother. From what they heard on the tape, James concludes that Jacoby had nothing to do with Laura's death and that he was in fact trying to help. But Donna still finds it strange that he had the necklace.
Shelly is assaulted by Leo at their house and brought to the sawmill where he ties her up, sets up a time bomb, and tells her she has one hour to think about what she has done and that Bobby will die for sleeping with her.
Nadine plans to kill herself by overdosing on drugs. Elsewhere, Hank blackmails Josie by saying he will reveal her role in her husband's death and his role as the fall guy.
At the police station, Andy makes a big step in his and Lucy's relationship by kissing her, but she drops a bombshell on him by revealing that she is pregnant, leaving the poor guy shocked and dumbfounded. Bobby calls the station to tell them about drugs in James' gas tank.
At the hospital, Cooper and Harry interrogate Jacques about Leo and the girls. Jacques admits that he and Leo got in a fight that evening while they were both drunk and high on drugs and that he used Leo's shirt to bandage one of his wounds; but he claims that stepped outside the cabin for a bit, where he "got sick" and passed out before waking up early the next day to realize that Leo had abandoned him during the night and the girls were nowhere to be found. Harry summarizes that means that Leo must have been the one to bring the girls to the train car, though he is not sure whether to trust Jacques' testimony. Cooper concludes that Jacques is telling the truth, if only because he seems too stupid to lie. Harry believes that Jacques' testimony could be the evidence they need to take down Leo for Laura's murder, but Cooper points out that they will have to actually find Leo first.
Meanwhile, Doc Hayward has attended to Dr. Jacoby. He tells Cooper and Harry that Jacoby suffered a heart attack when he was beaten up, but he is now stable, though still somewhat delirious from his experience, having claimed he was meeting Laura at the gazebo.
Catherine and Pete frantically search for the real account book in the office while Hank calls her to blackmail her as well. Later he tries to convince Norma that he has changed and that his future would be much brighter.
Ed finds Nadine unconscious and calls an ambulance. Harry receives the message left by Bobby pretending to be Leo and tries to drive off to his place while James and Leland arrive at the station, the latter convinced that Laura's killer has been found and lies injured in the hospital. James shows Cooper the tape, and the agent questions him about the prank he played on Dr. Jacoby and the drugs found in the gas tank.
Ben Horne gives Hank permission to deal with Leo. Bobby, meanwhile, tries to find Shelly at the Johnson residence, only to be attacked by a very angry and ax-wielding Leo. Leo corners Bobby, but before he can bring the ax down on him, he is suddenly shot in the chest through the window by Hank, giving the younger man an opportunity to escape. She is found by Catherine just as the sawmill bursts into flames according to the plan. Catherine releases Shelly from her bounds, and they run out.
Using the distraction caused by the sounding of the fire alarm, Leland sneaks into the hospital and finds the injured Jacques sleeping in the same wing that Jacoby is kept in. He avenges his daughter's death by choking Jacques with a pillow. Back at the sawmill, Pete goes into the burning building to save his wife.
Meanwhile, at One-Eye Jacks, Ben eagerly enters the room of the newest girl in his establishment, who unbeknownst to him is his daughter. Audrey, meanwhile, is shocked to see that the fabled owner is her father.
Cooper returns to the hotel and records a message to Diane, noting Leo is going to be found sooner or later and that the Icelanders are gone. As he arrives in his room, he sees a letter from Audrey and receives a call from Andy while someone knocks on his door. He opens it and sees a black-clad person with a gun pointed right at him. Three shots to the chest, and the screen fades to black.
Tropes:
- Blood Oath: Hank cuts his and Josie's fingers so that their pact would be sealed by blood.
- Crazy Jealous Guy: Leo goes to the extreme end of this by trying to kill Bobby with an ax.
- Driven to Suicide: Due to her despair at the failure of her business venture, Nadine attempts to overdose on pills, but it only sends her into a coma.
- Smash to Black: The episode and by extension the season ends with Cooper being shot in the chest and the screen fading to black.
- Suicide by Pills: Nadine lays herself out dramatically and attempts to die via a lethal dose of pills. She is rushed to the hospital in a coma but survives, waking up with the delusion that she is still a teenager.
- Uptown Girl: Catherine and Pete's romance in their youth was a version of this trope.
- Vorpal Pillow: Jacques meets his end that way.
