Cole arrives at the party and immediately asserts that Katie is his girlfriend, shocking Katie and angering Hutch. While the crowd humors Cole, he hugs Katie and asks her to play along, saying there is an “emergency.”

Sullivan appears at the party, introduced by Cole as their boss and credited for the Coast Guard promo project. Cole tries to pull Katie onstage to continue his performance, but she refuses and walks away toward her cottage.

Outside the crowd’s earshot, Cole confesses he told Hutch that he and Katie were dating to pressure Hutch into agreeing to the Day in the Life shoot, and also told Sullivan the same lie after seeing Katie’s name on a termination list. He escalated the lie by claiming he planned to propose, which led Sullivan to fly with him to Key West. He also hints Sullivan wants to “meet” Hutch romantically.

Katie condemns the manipulation and clarifies she never told Hutch about Sullivan. Cole argues he was trying to save both their jobs and admits he enjoyed the revenge of “taking” Katie from Hutch. He insists he cannot come clean because it would get them both fired and blackballed.

Cole then reveals Rue has been diagnosed with long-term terminal heart failure and that Friday is the anniversary of the family car accident. He explains their annual tradition to honor their parents and Rue’s husband, and says Rue demanded he and Hutch reconcile this year as her “dying wish.” He fears Hutch will assault him if the truth comes out now, ruining Rue’s plan.

Weighing Rue’s health and wishes, Katie reluctantly agrees to let Cole’s lie stand only until Friday. She sets strict boundaries: she will not participate in or endorse the lie, and Cole must not touch her or stage any proposal. She commits to delaying the truth solely to protect Rue.