- Don Juan Ortega is still pretending to be the Commandante of the pueblo, and when he sees Rosarito Cortez, he attempts to kill her before she can identify him as an impostor. Zorro must intervene and save her.
- The Magistrado informs Capitan Ortega that The Eagle is displeased with his progress. Ortega understands he will be killed by the Eagle if he fails to complete the mission, and is angry at Zorro for foiling his plans. Ortega continues to arrest rancheros for trespassing on the King's land, which upsets Diego and Rosarita while they are shopping in the market. Rosarita tells Diego she is shocked by Ortega's actions, because she thought he was a very kind man when they met on the ship from Monterey. Ortega walks past the market and recognizes Rosarita. Ortega realizes she will know he is an imposter, because she met both himself and the real Capitan Ortega on the ship. Bernardo sees that Ortega plans to kill her and warns Diego. Zorro arrives in time to save Rosarita. Ortega realizes he is discovered, robs the Magistrado and tries to flee with the money. Zorro chases him, and they go up on the roof to fight. During the struggle, Zorro is unmasked. Ortega is so shocked to learn that Diego is Zorro, he falls off the roof to his death.
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