STORY 2: Fred is afraid to disappoint Sheila by telling her about his demotion, so when he goes on a "business trip," he's really just hiding out in the Altman basement. George mistakes him for a rat.
STORY 3: Ryan tries to save the day by bringing Tessa her homework and keeping her company. Luckily, she's off her crazy pain meds and they have a normal conversation about the future of their relationships. We gather that Tessa is warming up to the idea of giving him another chance.