Zach makes a decision about Cambias Industries. Kendall's pregnancy news shocks Ryan. JR tries to keep Krystal from telling her secret.

At the jail, Zach tells Alexander he will take over the company! Alexander, excited by the news, believes that Zach is coming back to his way of thinking. But, Zach has another plan. He is going to rebuild Cambias into something he and everyone that Alexander has ever touched can be proud of. Angry that Zach plans to change his "legacy", Alexander begins pacing, telling Zach that he can never escape the person that Alexander made him. Zach ignores his father and walks away without another word.
Meanwhile at Cambias, Jonathan continues telling Ryan what a great catch Annie is as Kendall listens behind the door. Ryan sends Jonathan away, expecting Kendall to be all over him at the news. Kendall surprises him but not going after Annie or telling him that he is making a mistake. Instead, she tells him to be careful because marriage is a big step. Ryan tries to reinforce his love for Spike to Kendall, who tells him that she is happy for him but then runs from the office. A few minutes later she returns, making Ryan wonder what is going on. He guesses that she is pregnant and she happily confirms the news. She tells him that she understands now how Ryan can love both Emma and Spike without taking anything away from either one. She hasn't even met the new baby and she already loves him or her as much as she loves Spike! Ryan hugs her, excited at her news and glad that she finally understands how he feels about Spike and Emma. Kendall brings up Annie, singing her praises for taking on Ryan who has had a vasectomy even though she obviously loves and wants more kids. Before he can react, Zach calls and asks Kendall to meet him at the casino. Jonathan returns, mistaking Ryan's stress over the vasectomy for Kendall's interference. The two argue over whether to tell Annie the truth and Jonathan tells Ryan that it won't matter - because Annie is in love with him! Ryan is shocked to learn that, but it gives him hope. "Now I just have to show her that I'm worthy," he says.
At the casino, Zach has created a baby themed area for the two of them. He included belly button balloons and teddy bears and hands Kendall a charm bracelet with a key. She wonders what it opens. "It's the key to our future," he tells her. Kendall opens a few more presents and they begin talking about names. Zach jokingly suggests Hammer and Scooter. Kendall has other ideas. For a boy, she likes Zachary Ethan and for a girl she likes Amelia Bianca. Zach pulls Kendall to him, kissing her passionately!
At the Pine Valley Mall, Adam breaks the news about Babe to an excited Colby. She can't believe what she is hearing and can't wait to see Babe. Adam asks her to stay with him and shop for Charlotte and Krystal. The two buy out several stores and Colby comes up with a plan to help Babe and JR get back together. Adam tells her not to push, and Colby reluctantly agrees. She would rather help her family, though.
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.
Outside the Chandler mansion, Tad asks JR, who has just arrived, about Babe's blackmail! With Josh inside talking to Krystal, Tad thinks it is time to bring everything out in the open. JR assures him that the blackmail is part of the past and he never plans to use what he knows against her. "I want her to come back and the best way I can do that is by burying what I know," JR says, refusing to tell Tad anything! JR swears on Dixie's grave to keep his word to Babe, which convinces Tad of his change. But, Tad warns him, the truth has a way of coming out and JR needs to be prepared for that.

Meanwhile inside the Chandler manse, Josh tells Krystal about JR's "act" and tells her it is time to take action. He blames Krystal for Babe's apparent change of heart toward JR and warns her that if anything happens to Babe it will be her fault! Krystal can't believe that Josh is trying to blame her because Babe was obviously being pressured - by him! - to leave town when she didn't really want to go anywhere. "Did I try to blackmail her?" he asks, not believing that he did anything wrong. He goes on to tell Krystal that she is Babe's biggest threat! Josh won't let things drop, and the more he talks the more Krystal wonders if she has made a mistake in keeping Charlotte's paternity a secret. If she could just come clean, she believes she could solve Babe's problems! JR arrives, and assures Krystal that Adam and Tad will never learn her secret. Not from him, and not from Josh, he says! Josh leaves. Alone, JR tells Krystal about seeing Babe and the fact that she still wants a divorce. He says that he understands why she can't trust him or forgive him - yet! What if, Krystal wonders, he can't ever win her back? JR can't think about that; instead he tells her that he will do anything to get Babe back! Colby and Adam return with their bags of goodies and Adam senses something is wrong with Krystal. He sends Colby upstairs so they can be alone. Krystal struggles for a moment and nearly tells him the truth about Charlotte. Instead, she tells him about JR's fight to win Babe back. She believes she has given him the power to get her back, whether that is what Babe wants or not! Crying, Krystal wonders how she can tell him the truth. "I love you," she says. Her not telling him is driving Adam crazy and Krystal tells him part of the truth - that the secret isn't Babe's, it is hers!
Outside the mansion, Tad catches up with Josh. he is still curious about the big secret, but he doesn't ask. Instead, he asks Josh if he is willing to keep things quiet. Still angry, Josh assures him that he won't tell. But JR may be another matter! Josh tells Tad that he better watch JR or he could ruin Babe's life!
Next on All My Children:
Ryan surprises Annie with a ring. Krystal decides to tell Adam the truth about Charlotte. JR tells Babe she needs to come home - before Krystal ruins her life!
