DeMarco goes to Baby, asking permission to kill Nick, reporting that Kinlaw and Tiel are dead and lying that Nick killed them with their own guns. Baby agrees to mediate a meeting in his home. Nick tells Baby that some parts of DeMarco's story are true, but asks why he would kill with a gun. DeMarco considers it a stupid question, but Baby acknowledges that Nick never uses firearms. Nick then asks how he knows that DeMarco has a small cut on his penis. Baby says that DeMarco will have to expose his penis to prove if Nick is right. DeMarco refuses, after which Baby concludes that DeMarco killed his own thugs, to setup Nick.