Denise tells Isaac that she wants to run her dance classes at his club. He is skeptical but eventually agrees, glad to have an excuse to see her again. He suggests they act as partners, but Denise refuses. Julia reveals to Barbara that Jack found the photo and she told him everything. Julia is relieved that Jack has forgiven her, but fears she may have gotten Barbara into trouble with Hal. Barbara stuns Julia by announcing that she still intends to see Craig. Julia suggests that Barbara fight for Hal, but Barbara seems more inclined to let him go. Hal's flabbergasted to discover Julia knew Carly's husband. Jack explains the situation with the photograph to Hal. He admits that now he knows that Carly was telling the truth and Julia was lying, he thinks he owes Carly an apology. Hal reminds him that his first loyalty should be to his wife. Jack suggests that Hal take a long look at his own marriage - since Barbara has been involved with Craig and the cover-up of the photo behind Hal's back. Hal returns home and tells Barbara that he's sleeping on the couch until she is ready to explain why she lied to him. Craig taunts Carly about tipping Jack off about the Stiles envelope. Carly's ecstatic when Craig reveals the envelope contained a photo of Julia and Winston, certain this will bring Jack back to her. Craig counters that Jack and Julia's marriage seems solid and makes a bet with her for $100 that Jack doesn't tell her about the photograph tonight. Later, Carly meets with Jack and asks him what he found out about the photo Craig had.