Panchita pays Bardoso to contact Zorro for her, but he notices a Senor Bardoso listening in to the conversation. Bernardo also overhears and alerts Diego, who is mourning the death of Lolita. Zorro meets Panchita and is informed that Vicente is involved in shady dealings with Jose Hernandez and demands that she marry Morelos. Zorro discovers that Morelos and Hernandez are conspiring to bleed the Concholo estate dry, so plans a trap with the Governor, who gives a full pardon to the Fox. Diego then challenges Morelos to a duel and wins, forcing the villain into exile thanks to the Governor.