At Crimson Lights, Billy spoke to a journalist about the "feel good" piece that he wanted her to write for Restless Style. Billy spotted Mac on the patio and rushed over to speak with her. He tried to impress Mac by telling her that the next issue's cover story would be titled Top Ten Philanthropists Under 30 Who Rocked Our World. Mac told Billy that he didn't have to impress her, because they had broken up. She told Billy not to hope for a reconciliation -- adding that she was at the coffeehouse for her final interview with Emily, who would decide whether or not Mac would serve as a surrogate mother for the Ashbys' child. Mac told Billy that she was hoping to begin hormone therapy that day, and that she would give Cane and Lily the baby they deserved.

Billy told Mac that he just wanted to have a rational conversation. Mac said that Billy had tried to control her, and that was unacceptable. Billy whined that not only was he losing his girlfriend, but that Mac was his best friend, also. He said that it was possible that Mac might not be a good candidate for surrogacy, in which case they would have broken up for nothing. Billy begged Mac for a chance to change. Mac considered it for a brief moment, but when Emily showed up, she said goodbye to Billy.

Emily told Mac that, as a psychiatrist, she had strong reservations about Mac going ahead with the surrogacy. Mac said that she would have broken up with Billy even if her desire to be a surrogate hadn't been an issue. Emily questioned Mac about whether she had thought about carrying a baby for nine months and then turning it over to the Ashbys. Mac said that she understood that the baby wouldn't be hers. Mac asked Emily if Emily was going to recommend that Mac be a surrogate. Not answering the question, Emily said that she was going to put her notes in order and e-mail the hospital with her decision.

At the Ashbys', Lily was getting ready for her next session of chemotherapy. When Lily showered Humphrey with kisses, Cane joked that he was jealous of all the attention that Humphrey was getting. Lily smiled and said that Humphrey might not be an only child for long.

Lily told Cane that Mac's psych evaluation was winding up that day, and that Mac could be pregnant in two weeks -- and then deliver the Ashbys' baby nine months from then. Cane seemed concerned that Lily was putting the cart before the horse. When Lily asked Cane if he would rather have a boy or a girl, he said that he just wanted both her and their child to be healthy.

Phillip showed up at the Ashbys', and Lily left the living room to pack for her chemo session. Phillip told Cane that there were some problems in Australia -- Phillip's pub had been vandalized by a band of cattle rustlers, in retribution for Cane having caught some of the rustlers. Phillip said that if the rustlers found out where Phillip was, they might correctly assume that Cane was in the same place.

Phillip told Cane that Phillip was returning to Australia to defuse the situation. Cane insisted that they return together, but Phillip reminded Cane that Lily needed him. Phillip asked Cane not to tell anyone about the situation in Australia, because it might ruin the progress that Cane had made in regaining Jill and Katherine's trust if the women knew that Phillip was returning to Australia to protect Cane. Phillip left. Lily returned, and told Cane that she was going to research car seats on the Internet. Cane sighed with concern as Lily walked away.

In Chance's bedroom in the Chancellor mansion, Chance and Chloe were cuddling. Chance asked Chloe to scratch an itch that he couldn't reach. As Chloe began scratching Chance's leg under the sheets, Nina entered with a tray of food. Nina was less than pleased when she saw what was going on.

As Nina set the tray in front of Chance, Chloe hoped that sh e and Chance hadn't made Nina feel uncomfortable. She assured Nina that Chloe and Chance weren't doing anything "untoward." Nina chided Chloe, telling her that Chance needed his rest. Chloe said that she was there to help, and then joked that she would be giving Chance a sponge bath later. Nina was not amused, and left the room. After Nina was gone, Chloe admitted that perhaps the sponge bath remark was a bit over the top.

Later, Chloe packed a bag for Chance. Chance reminded Chloe that he was just going downstairs to the living room. Chloe said that she just wanted to make sure that he had everything that he and Delia might need. When Chance asked her where she was going, Chloe replied that she was headed to Crimson Lights to buy some fruit tarts for him. Chloe quickly remembered that Chance had been stabbed at Crimson Lights, and she apologized for mentioning the coffeehouse. Chance said that he'd hate for anything to happen to Chloe, but she assured him that she would return in one piece.

At Crimson Lights, Chloe ran into Billy. She accused Billy of stalking her. Billy said that he wasn't stalking her -- he was trying to find Mac. Chloe wondered why Billy had freaked out when he walked into Chance's bedroom and found Chloe in bed with Chance. She said that Billy's jealousy was not attractive. Billy told Chloe that he didn't need or want her. Chloe said that she knew that, but it was time that Billy knew it, too.

Chloe told Billy that he didn't think with his head or his heart -- he thought with his large ego. She said that if she thought that Billy really cared about her, she wouldn't have signed the divorce papers. Chloe informed Billy that she had finally grasped the concept of being with someone who wanted to be with her. Before she left, Chloe said that with her moving on, and Mac dumping him, Billy must be freaking out.

At the Athletic Club, Katherine was impressed with the work that Jack had done on a Jabot project. Jack said that he was happy that Katherine still had faith in him. Before she left, Katherine laughed and said that she still wasn't going to offer him the chance to buy stock in Chancellor Industries. Jack seemed nonchalant, but, after Katherine left, he broke out in a huge smile.

At the Chancellor mansion, Katherine spoke with Neil on the phone, telling him that the more subdued Jack acted, the more she didn't trust him. Before she hung up, she warned Neil to stay alert. Nina complained to Katherine about Chloe, the "she-wolf." When Nina said that Chloe enjoyed torturing Nina, Katherine reminded Nina that Nina had treated Jill the same way many years earlier. Nina said that she tired of the comparison between her and Jill. Nina reminded Katherine that Jill had sent Phillip off to boarding school, while Nina had actually raised Chance. Katherine told Nina that Chance was a grown man, and that he had to make his own choices. Katherine said, "Stop fretting -- start enjoying."

Billy stopped by the Chancellor mansion to speak with Katherine. Katherine was shocked to learn that Mac planned to be the surrogate mother for Lily and Cane's baby. Katherine told Billy that Mac was capable of great sacrifice. Billy opined that it would be a mistake for Mac to be a surrogate. Katherine disagreed, and felt that it was an altruistic gesture on Mac's part. Disappointed that Katherine didn't agree with him, Billy left.

Phillip visited the Chancellor mansion to tell Nina that he had to leave for Australia -- that night. Nina became upset and asked Phillip how he could leave Chance once again. Nina reminded Phillip that he had promised to stick around, but Phillip said that there was important business that he needed to take care of in Australia. Nina said that she had learned a long time before to live without Phillip, but said, "Damn you for coming back so Chance could lose his father again."

Later, Katherine spotted Nina angrily fluffing Chance's pillows. Nina told Katherine that Phillip was running out on Chance again. In the living room, Chance was reading Huckleberry Finn to Delia. Phillip watched from the doorway. When Chance spotted his father, he thanked him for buying the book, and joked that Delia couldn't wait to hear how it ended.

Mac returned to the Chancellor mansion, and Katherine sat her down for a talk, while Nina eavesdropping. Katherine said that she had learned about Mac's plan to carry Lily and Cane's baby, and said that it was a true act of kindness. Katherine told Mac that Katherine, long before Brock had been born, had carried a child that she had given up for adoption, but that hadn't stopped Katherine from falling in love with the child. Katherine said that she still felt a sense of loss. Mac reminded Katherine that Mac's situation was different from Katherine's, as the baby that Mac would be carrying wouldn't be Mac's.

Mac wondered if Katherine was trying to talk her out of being a surrogate. Katherine warned Mac to consider the impact of her decision, if she decided to go through with it. Mac received a text message that her psych evaluation was finished, and she left.

Mac went to the chemo room at the hospital to find Cane and Lily. Harry asked the Ashbys who "this pretty lady" was. Mac said that she was there to help with a special project. Mac showed Lily and Cane paperwork -- Mac had been approved to be a surrogate. Lily, Mac, and Cane exchanged hugs and congratulated each other.

Jack visited Nick at Newman Enterprises. He showed Nick some financial information about Chancellor Industries. Jack reminded Nick that even if the Chancellor stock tanked, Newman wouldn't be out a dime, since it was Jack's money at stake -- Newman would just be purchasing Chancellor stock as a front for Jack. Nick wondered what the catch was. Jack said there wasn't a catch -- he just wanted the Abbott family to have a stronger influence at Jabot.

Nick asked if Jack thought that buying Chancellor stock would reunite the Abbott family. He reminded Jack of how much money Jack would have to put up. Nick wondered if, with the losses that Jack had just suffered, Jack was ready to possibly take a huge financial hit. Jack didn't answer the question, but he said it wasn't just his estrangement from Billy and Ashley that bothered him -- Jack felt estranged from Nick and Phyllis, whom Jack had regarded as family. Jack hoped to rebuild his friendship with Nick and Phyllis. Jack again asked Nick to seriously consider buying Chancellor stock, which Jack would actually control. Jack said that he knew that Nick would make a decision with integrity.

Later, Phyllis answered Nick's office phone. It was Patty's nurse calling. The nurse told Phyllis that Patty wanted to see Nick. Phyllis said that would never happen, and then hung up the phone. When Nick entered his office, he asked Phyllis what the call was about. Phyllis said that she would handle it.

Phyllis went to see Patty at the psychiatric hospital. She asked Patty why Patty had called Nick. Patty said that she had the nurse call Diane's husband. Phyllis accused Patty of putting on an act, as Patty wouldn't even know Nick if Patty was living in the past. Patty became upset and told Phyllis that she saw Phyllis and Jack having sex.

Phyllis told Patty that the time travel games weren't working -- she said that Patty knew that Phyllis wasn't Diane. Phyllis announced that her name was Phyllis. Patty said that she didn't know anyone named Phyllis, adding that Diane had tried to take Jack, and Diane had to be punished -- and that was why Patty had no choice about the baby.

Phyllis said that Patty didn't even know Kyle, Diane and Jack's son, as Diane had left Genoa City before Patty had returned. Patty became agitated and said that she was sick of being told what she knew and what she didn't know. Patty said that she was there when Diane seduced Jack, and, that for Phyllis' information, the child was a girl, not a boy.

Patty said that the girl had gotten very sick when Patty had kissed the child. Phyllis remembered having sex with Jack, as well as Jack telling her that Patty, using her Mary Jane alter ego, had told Jack that she had to kiss Summer.

Phyllis screamed, "You did this because you saw me with Jack?" Patty said that she didn't have a choice, as Phyllis had taken Jack away from Patty. Phyllis slammed Patty against the wall, and, when Patty screamed for help, Phyllis left the room. Phyllis stood outside the room whispering to herself, "Because of me... because of me."

At Crimson Lights, Emily hung up her phone, saying, "I don't need this." Nick approached the doctor, who told Nick that Phyllis had gone to visit Patty again. Nick told Emily that he had learned that Patty had called his office, and he asked Emily to warn Patty to stay away from the Newmans. Emily said that she understood -- but she wondered how the agitation from Phyllis' visit would affect Patty.

Jack joined Emily at the Athletic Club for their date. Emily told Jack that Phyllis had visited Patty. Jack blamed himself for Patty's condition, saying that Patty had been young and innocent, but he had betrayed her.

In Nick's office, Summer sat on her father's lap. Phyllis watched surreptitiously as Nick helped Summer write, "We Love You Mommy." Phyllis, seemingly blaming herself for Summer's condition, looked despondent. Nick turned and saw his upset wife.