Izzie and George's new-founded relationship results in them having bad sex. Callie's Chief Resident position is taken away from her, and Bailey is the humble replacement. Meredith can barely handle it with Lexie anymore.
Hahn and Mere operate on Mrs. Bretherton. Richard fires Callie as Chief Resident. Hahn and Mere tell Mr. Bretherton that his wife died and he leaves without the baby.
In the background at Joe's. Lexie complains to the bartender. Mark tries to flirt with Hahn, who shoots him down. Alex tells Mere that he won't sleep with Lexie anymore.
Mere asks Alex to take Lexie home. Callie tells Cristina she was fired. Richard & Derek cancel their "date". Alex offers to get booze for Thatcher so he won't drive drunk. Mere/Derek afterglow.