Richie is at a movie theater, practicing Kung Fu in front of the crowd. He's snorting coke and people are screaming for him to sit down. He's rocking from foot to foot.
The movie guy asks him to go back to his shelter. He ain't no bum. Then who is he? Cut to the meeting with Polygram and Richie's name on the contract. His is the only signature not on it.
Nobody knows where Richie is, not even Devon. Richie finally walks into the meeting. He's a mess. He's also not selling the company.
Richie had an epiphany. Forget Yes, Emerson Lake and Palmer. It's fast, it's dirty, it smashes you over the head. Zak made financial commitments. Chase Manhattan doesn't give a shit about dreams. Richie wants to tighten their belts. They can do it. Zak wants to sell the albatross then Richie can do whatever he wants. Richie decides the best thing would be use a few of the karate moves he learned after a day of training.
Julie goes in to see Richie. What, exactly, is happening? Richie wonders if he wasn't clear and gets ready to do a line of coke. Julie joins him.
Devon is at a restaurant with the kids, thinking back to the first time she met Richie. The were with other people. She was a photographer. She knows the band. It's Bob Dylan, who others describe as atonal. Richie agrees they aren't trying to impress anyone. He wants her to introduce her to Andy. She goes to the ladies room and Richie joins her.
There is the most beautiful cover of The Carpenters Yesterday Once More by Aimee Mann. Devon is driving away and until she sees the Children at Play sign she has completely forgotten her kids.
Richie fires the entire A&R staff. He gives them two weeks to earn back their jobs. He's not kidding. He doesn't want anyone calling him boss, either. He wants magic. In two weeks.
Watergate is playing in his office. Jamie is fine. Her job is fine. She wonders what Richie thought of Nasty Bitz. She was hoping she could be the A&R rep to check them out. He says she's a secretary, and she's a girl. He wants her to work with Julie. And get him some drugs.
Devon is taking photos of the smashed TV with the guitar through it. She gets a call from the police about his car. It was impounded by the Mercer Arts Center. Has he been accounted for?
Zak's daughter and wife are preparing a giant party, and going for the enhanced options. He hears the sounds of a calculator above all else. Top shelf all the way.
Devon pounds on the shower door. She's pissed Richie never told her he was alive. He says it's going to be great. He's just going through...
She wonders how long he's been using drugs again. Then there is a knock on the door. A homicide detective. He left his card with his secretary. Richie flashes back to the murder...but it's about Mr. Gold possibly killing Jimmy Porter. The relief on Richie's face is obvious. The cop thinks he should get checked out by a doctor.
Richie needs a drink. Devon begs him to please not do this. Please tell her what's going on. He says he fucked up, he's a bad person. He breaks down. He just wants to sit.
Devon flashes back to their time with Andy in The Factory. Andy wants to do a screen test of Devon, but she never lets him. She does it for Richie, though.
Jamie is checking out the Nasty Bitz again. Julie hate them. I hate Julie. He is talking through 20 years of experience. Then he wants them to learn the Kinks with a really simple chord structure.
Zak can't breathe through his nose. His wife is a nag. She gets angry when he has to pee. He finally walks out to the car and turns it on, contemplating suicide by way of either the car or Valium. He takes a wrench to the car and damages it so his wife will think he was in the accident he lied to her about.
Devon and Richie are kissing, but he pushes her away. She thinks back to when they were young and first pregnant. They're going to get a house with a pond. She'll bake bread and braid her armpit hair.
She's alone in bed.
Richie is on his way to Lester Grime's house. He just says, "We gotta talk."