Cynthia had to make an important phone call, so Terry is babysitting David. 

He has no idea how to take care of a baby, but he's delighted to spend time with his son.

Terence: Hi, David. Do you know who I am? I'm Terence, your dad.

David: (*laughs*).

Terry realizes that is actually cool to have a child. In fact, he's fascinated. (Note that his evil red glow disappears when he's carrying David).

Terence: You know, what? You and I will make great things together. We'll not only be the owners of the Vanderburg mansion but of Hidden Springs and the world! What do you say?

David: (*yawns*).

Terence: Oh, of course, you are sleepy now. Alright, go to sleep, little boy. And don't worry about a thing. Dad will take over the world for you.