Damon comes into his office, and Michael opens by reminding him about the "two in the back of the head" plan. Damon is freaking out, and even more so when Michael closes the curtains for some "privacy." Damon begs Michael not to kill him. Michael picks up a big pointy design award, checking the edge, as Damon blathers about coming up with an alternate plan. Michael doesn't go for the idea of pinning Isabella's murder on someone else, even if it's Ric, or even killing Ric into the bargain. Until Damon says they can make it look like Ric killed himself. Damon says he'll stage it and Michael can shoot him. "Nope," Michael says, "I'll get you a gun." Damon looks like he was afraid of that.
So then Fi's busy in Michael's kitchen, taking apart a handgun as Michael VOs, "One of the many weapons in a spy arsenal is sabotage. Your enemy can't fight back when their vehicles won't drive and their weapons won't fire. If you're handing a bad guy a gun and you need it to jam accidentally, fatiguing the trigger assembly to break under pressure is probably your best move." I will keep that in mind, thanks. Fi sprays a tiny little spring from inside the gun with something and then replaces it as the VO wraps up, "It's undetectable, so nobody gets suspicious and nobody gets hurt." Unless the person at the other end of the disabled gun has one of his own, that is.
Michael finds Damon sitting in his car outside Ric's shop, and gets in next to him, handing him a gun in a paper bag. He adds that it's untraceable. I don't know if it's actually Tim's gun or not, but Damon doesn't appear suspicious. He gets out of the car and tells Michael to keep it running. Michael calls Sam -- in his own car across the way -- to confirm the cops are en route. You'd think the dispatcher would start to recognize Sam's voice by now.
Damon enters the store, and Ric isn't thrilled to see him. He tells him to calm down, but Damon pulls out the gun and pulls the trigger. From like six feet away, which probably would have put a crimp in Damon's fake-suicide plan, unless he was then planning to put the gun in Ric's dead hand and make it shoot him in the head again. That would have made it look like very thorough suicide indeed. Ric cowers, but when Damon pulls the trigger and only gets a dry click, Ric starts beating up Damon, while Sam and Michael watch from outside. "Oh, I hope he's okay," Sam says. The cops rolls up, right on time again, and bust them both. "He shot my friend!" Damon yells. "Arrest him! He's the killer!" I wish we could be there when Damon confesses to the cops that he was also trying to cover up a drug smuggling operation that doesn't actually exist.