Badger is arrested by an undercover DEA officer while selling meth on a park bench. Hank and Gomez process the arrest and pressure Badger to identify his supplier, offering a reduced sentence in exchange for cooperation. Badger, terrified, stalls but does not immediately give up Jesse's name. Jesse panics when he learns of the arrest and tells Walt they need to find a way to keep Badger quiet or their entire operation is exposed. Walt agrees that if Badger talks, the chain leads directly to Jesse and then to Walt. Jesse contacts a lawyer he has heard about through the criminal underworld: Saul Goodman, a flamboyant defense attorney who operates from a strip-mall office and advertises on late-night television. Jesse hires Saul to represent Badger. Saul visits Badger in holding and assesses the situation, then meets with Jesse and Walt in his office. Saul proposes a creative solution: they will hire a decoy — a man willing to pose as Heisenberg and get arrested in Badger's place during the sting — so Badger can appear to cooperate with the DEA without actually giving up Walt or Jesse. Saul produces a man named Jimmy In-N-Out, a petty criminal willing to take the fall for a fee. Walt is skeptical but agrees to the plan when Saul demonstrates its legal plausibility. The sting goes forward: Badger meets with the undercover officer and identifies Jimmy In-N-Out as his supplier. The DEA arrests Jimmy, believing they have caught Heisenberg. Hank is suspicious because the suspect does not match the profile he has been building, but the case is technically closed. Saul, impressed by the scale and quality of Walt and Jesse's operation, offers his ongoing services as a criminal lawyer — not just a lawyer who handles criminal cases, but a lawyer who facilitates criminal enterprise. He proposes to connect Walt with a professional distributor who can move large volumes safely, replacing Jesse's unreliable street-level network. Walt is intrigued but noncommittal. Skyler, separately, discovers that Walt has a second cell phone when it falls out of his bag, deepening her conviction that he is hiding something significant. She confronts him, and Walt claims it is a replacement phone from work, a lie Skyler clearly does not believe.