At first the studio's executives are keen to unload the film onto Felix and move on, but when Sally goes through with the topless scene and the film seems a likely success, they plot to regain control. Using California's community property laws, they get the distribution and final-cut rights by persuading Sally to sign them over. An angry and deranged Felix tries to steal the movie negatives from the studio's color lab vault, armed only with a water pistol. He is shot and killed by police who think the gun is real.