At Jabot, Phyllis showed Jack a revamped website that featured all Jabot products at a 20% discount. While Jack told Phyllis how happy he was that she was supporting him, Phyllis remembered that she was 8 weeks pregnant. He told her that she was the only person he could truly trust.

In the Jabot boardroom, Jill was on speakerphone with Michael as Katherine and Carmen looked on. Jill wondered if there was a chance of finally reaching a settlement with Mr. Gibson, but Michael said there might need to be more concessions. Jill felt that Jabot already had conceded enough. Carmen interrupted Michael and ended the phone call to tell Katherine and Jill that Jack was the problem -- particularly his little apology stunt. When Jill defended Jack, Carmen said that they told Jack to disappear for a while but he arranged to see Gibson in a public restaurant without telling them. Katherine said she wanted the boycott to end as Jabot was hemorrhaging money. Carmen said that would only happen if Jack was gone.

Katherine, Jill, and Carmen went to Jack's office where Jack told them about his 20% off idea. When Phyllis said that it was unprecedented in the company's history, Jill said it was going to stay that way -- that a discount would send the wrong message. Carmen agreed. Jack and Jill began to argue -- Katherine broke it up and asked everyone except Jack to leave. After the ladies left, Katherine told Jack that he was no longer in control at Jabot, that Jill would be reporting directly to her, and that his duties at Chancellor Industries no longer involved Jabot Cosmetics.

Later, Jack was complaining about what he felt was Katherine's shabby treatment of him to Phyllis. Outside the office door, Gloria was eavesdropping. Jack questioned Katherine's loyalty to him -- Phyllis advised him to cool off and that he would be in charge again at Jabot eventually. Jack said he didn't think Jabot would survive Jill's leadership (Gloria was particularly interested in this) -- Phyllis said that Jill put in long hours but Jack countered by questioning Jill's leadership skills through this crisis. Later, Jack ran into Victor at the Athletic Club and Victor expressed sympathy for Jack's plight but Jack didn't believe him. Victor told Jack to show some real remorse to the public -- that his attitude wasn't going to inspire forgiveness. Jack wondered sarcastically if he could inspire forgiveness by opening a rec center, and Victor said it had worked for him!

Gloria ran to Jill's office to tell her about the conversation she overheard. Jill initially defended Jack -- she said that Jack wanted what is best for Jabot. When Gloria told Jill that Jack questioned Jill's capability of running Jabot, Jill said that Jack was no longer an influence on Jabot -- but Gloria reminded Jill that Jack was still a major shareholder and would try to have a major influence on the company. Jill was swayed by Gloria's talk and thanked her before she ran off for a meeting with Katherine re: the meeting with Mr. Gibson later today. Gloria called Gibson and told him there was something he could do to make sure he got justice for his wife at the meeting he was going to be attending later today.

At the meeting, Michael told Gibson and his attorney that there was no amount of money to compensate for the loss of his wife, but new safety protocols were being developed at Jabot. Katherine told them that Jack had been reassigned and was no longer in charge there. Michael said that in order to reach the deal Gibson would have to agree to drop the lawsuit and hold Jabot blameless. Gibson's lawyer said there was one new condition -- Gibson now felt that reassigning Jack was not enough. Gibson then said Jack was the CEO of the company that owns Jabot -- and that he wouldn't sign the agreement until Jack was thrown out of Chancellor Industries -- for good!

At the Newman Ranch, Victoria and Brad returned from their honeymoon trip and were pleased to see Nikki's great physical progress. Nick said that Nikki had been a real trooper. Victor came in, told Victoria she looked wonderful, and shook hands with Brad. He told Victoria that he was reinstating her and Nick as co-CEO's at Newman Enterprises. When Victoria asked him why, he told her that since Nikki's shooting he had re-evaluated some of his decisions. When Nick asked if that was all he was going to tell them, Victor said that was all they needed to know, and left. Brad, Nick, and Victoria discussed that they felt that Victor was up to something. Nikki told them they sounded very cynical.

Later, Nikki told Victoria and Brad how Victor had hardly left her side since the shooting. When they started questioning Victor's motives, Nikki told them they needed to just believe that Victor had changed -- they needed to have faith and use this as a fresh start.

At Newman, Nick ran into Phyllis, who was filling in for Nikki on some NVP business. Nick told her the news that he and Victoria were back as CEO's. Phyllis was excited, but Nick said he was tiring of all the changes. Phyllis said sometimes change is good, but Nick said there was a limit. As Nick walked away Phyllis wished him luck. Later, Nick ran into Jack at the Athletic Club, where Jack told him about his earlier encounter with Victor. When an Athletic Club maid told Nick his suite was ready, Jack realized that things were really bad between Nick and Sharon. Nick told Jack it may be too late to save the marriage.

Phyllis stopped by Michael's office and gave him money as a retainer so that what she said would be kept in confidence. She told him that she was pregnant, and after his initial surprise (as he thought she couldn't bear children) he talked about the fact that they would become parents at the same time. Phyllis looked less than happy, and Michael said he knew it couldn't be a problem with Jack -- that Jack loved kids. Phyllis then told him about her affair with Nick -- how it started the night of Michael's wedding -- that they swore it wouldn't happen again -- but it did, as much as she tried to fight it. But then, she said, Daniel walked in on them and Sharon figured it out, but Jack didn't know. She said she didn't know if Jack or Nick was the father. Michael asked her whose child she wanted it to be -- that it would be much easier if it were Jack's, but he saw that Phyllis was still in love with Nick. Phyllis said that she hadn't changed -- she was still going after a man she couldn't have -- and that her only choice at this point was to hide her pregnancy as long as possible!

Later, back at the Newman Ranch, Victor walked in on Nikki and Phyllis working on NVP business. He said that he had no problem with that as long as Sharon and Nick weren't around -- that their marriage was falling apart and he still hoped they could resolve their differences as there was a child involved! Phyllis reacted to Victor's statement -- probably realizing now that there could be 2 children involved.

In Neil's office at Newman, there was still major tension between Dru and Neil about Lily's Mother's Day visit. As they walked into a break room, Neil told Dru that she had made Lily feel not wanted in her own home. When Dru asked if Neil had seen the chip on Lily's shoulder, Neil countered by saying that Lily was devastated by a situation that was not of her own making. Neil wondered why he was bothering, that Dru wasn't even listening, but she said she was listening all right -- and that things sure had worked out well for Lily -- that she was daddy's little girl again. She stormed out as Daniel came in. Daniel told Neil that he understood what Lily was going through, as his biological father was just some guy that Phyllis had met in New York, and that even though Lily was not his biological daughter, at least there was Winters' blood in her veins -- that Malcolm was not a complete stranger. Daniel told Neil that at least Lily had had him all of her life, unlike Daniel, who didn't have a mother as he grew up because Danny was so angry with Phyllis. Daniel told Neil that he needed to remember that Lily still needed her whole family.

In the hallway outside, Dru ran into Lily, who said she was sorry -- that she hadn't meant for this to happen -- that it was all an accident. Dru wasn't quite sure that sending the email meant for Daniel to Neil was an accident, but in any case Lily had opened Pandora's box, whether or not she wanted to.

Victor told Neil about reinstating Victoria and Brad as co-CEO's at Newman. Neil was upset, but Victor told Neil he had changed his mind. He also told Neil that he would still run Granville Global. When Neil wondered whether he had a future there, Victor said they would have plenty of time to figure that out, and left.

Lily brought Daniel his lunch and told him about the mean things Dru had said to her. She then saw Neil sitting forlornly in his office and she said goodbye to Daniel and went in to talk to Neil, who assured her that his glum mood wasn't due to the situation at home -- that something bad had happened at work. She told him that Dru accused her of purposely sending the email to Neil -- and she thought that maybe Dru was right. Later, Neil told Dru he could not believe what she was doing to Lily -- that it was all Dru's fault for covering up the truth for 17 years. He said he was sick and tired of finding out that the people he trusted were traitors.

Later, Neil went to visit Brad and Victoria and told them he knew about Nick and Victoria being promoted. Neil reminded them that he was still in charge of Granville Global. Brad told Neil that he was going to be heading up marketing and product development at Granville, but Neil said that those were his responsibilities. Victoria said they weren't any more -- that she wanted Brad in that position, and that as CEO she had the right to assign employees where she chose. Brad and Victoria intimated that Victor might be up to something, but Neil said he didn't know of any "master plan" of Victor's. When Brad said that he and Neil could do great things together, Neil said, "Yeah, as long as I remember who's in charge!"

At the Newman Ranch, Sharon saw Nick with a suitcase and was concerned that he had decided to move into the main house, and not completely off the estate, as she said that wouldn't work for her. Nick reassured her that he was simply getting things out of storage and moving to the Athletic Club. He wondered if Sharon was positive that she wanted him to leave -- that perhaps they should give it one more try. Sharon said that wouldn't work because at this point she questioned his every move -- that anything he did set her off and then she became angry with herself, and she didn't want to live that way. A depressed looking Noah came in with Miguel. They had just made cupcakes, but Noah didn't want any, even though they were one of his favorites. Sharon told Noah they needed to talk about something. Noah said he was scared, but she assured him that none of what was happening was his fault. Nick explained that he and Sharon needed to spend some time apart. When Noah asked if he was really moving out, Nick reassured him that although he was, they could still spend plenty of time together -- he would still be coaching his team, and he could stay overnight with him any time he wanted. Noah said it wouldn't be the same -- they would never again be like a real family. He walked out and Sharon asked Nick to go -- that she wanted to handle this. Nick left.

At Newman Enterprises, Phyllis dropped a book about pregnancy and Daniel noticed it -- Phyllis covered by saying she got it for Lauren. Phyllis sensed something wrong with Daniel and he told her he had been thinking about calling her to discuss something privately, but he was afraid she might take it the wrong way. Daniel then went on to tell her about the email Lily accidentally sent to Neil and how Lily now knew that Neil wasn't her biological father. He also told her that Neil was really upset with Drucilla, and he was afraid this might break them apart. When Daniel told her that Lily felt guilty, Phyllis reminded him that Lily was a victim and shouldn't feel guilty, and then asked Daniel why he thought she would take this the wrong way -- if Dru's dishonesty causing so much pain reminded him of her own dishonesty about Daniel's father. Daniel said that really didn't matter now, and that it was Danny's fault also. His concern right now was with Lily -- that it was better to know the truth than to wake up one morning and find out your whole life has been based on a lie. Daniel left to continue his mail delivery -- leaving a pensive Phyllis.

On the Crimson Lights patio, Sharon and Noah were having drinks when a cheery Phyllis walked in, which annoyed Sharon. Noah told Phyllis that he was doing terribly -- that his dad moved out. Phyllis said she was sorry to hear that. Sharon shooed Phyllis off, and outside the patio door Phyllis looked extremely troubled.

Phyllis was having orange juice at the Athletic Club bar when she ran into Nick, who was ordering a beer. She told him that Noah told her that he was moving out and how badly she felt. Phyllis offered to leave -- she didn't want to cause any more trouble -- but then asked Nick if he was committed to his marriage. Nick said he didn't know what to do. They started to talk simultaneously and Phyllis told him to go first. He said that ironically everything was harder for him to deal with because he didn't have her to commiserate with -- that maybe they should start talking to each other again. When he said he wished they had broken things off sooner, she agreed -- their affair had really bad repercussions for Noah and set off a nasty chain of events. Nick said that their affair was over -- and then asked Phyllis what it was that she wanted to tell him.

At Crimson Lights, Mac gave an unhappy Kevin a notarized power of attorney for him to run the place. When Mac asked Kevin to be happy for her, Kevin angrily told her not to tell him how to feel and then rushed off to the office. Colleen and J.T. ran into each other there and Colleen wondered why J.T. had been avoiding her. J.T. saw Mac standing at the counter, as did Colleen. J.T. snapped at Colleen that he had been busy working, and Colleen said she was just kidding -- then wondered why Mac was in town. Mac came over to them and told them that she was just in town for a little while to get some of her stuff, as she was moving to New Orleans to help her dad with the hurricane relief effort. When Mac said she was leaving later today, J.T. asked if that meant that if they hadn't accidentally run into each other he wouldn't have had a chance to say goodbye, Mac questioned if that really mattered, and started to walk out. J.T. went after her (leaving an annoyed Colleen) and told her that of course it mattered. When Mac commented that Colleen didn't look too happy, J.T. told her not to worry about Colleen -- that they weren't a couple. Mac said he didn't have to pretend with her -- that he still wouldn't admit that he had feelings for Colleen. J.T. told Mac that he didn't want their last conversation to be about Colleen. He then told her that he had been a terrible boyfriend, but she said he was terrible only at the end of their relationship, and that she had made mistakes as well. J.T. said he hoped she found what she was looking for -- but predicted she would be back in a few months. When he asked her if she had an email address, she said she wouldn't have time for that. They reminisced about the good times they had, hugged, and J.T. walked out without saying a word to Colleen. Colleen went over to Mac and asked her if she knew where J.T. had gone -- Mac didn't. Mac then tried to talk to Colleen about getting involved with J.T., but Colleen became extremely defensive. Mac warned her that J.T. was the kind of guy who doesn't know what he wants, even when he has it.

At the counter, Gloria and Kevin watched Mac. Gloria told him that once Mac was gone he would be better off. Kevin, obviously angry at her, left. Later, she asked him if he had heard from Michael. When he wondered why, she said that Michael was in an important meeting and that if things went the way she hoped that good times were ahead.

In the Jabot boardroom, the settlement meeting with Mr. Gibson continued -- Michael said that Gibson's demand that Jack be fired as CEO of Chancellor Industries was harsh. Katherine said that Jack would no longer be involved with Jabot and she didn't see the need for further discipline. Gibson's lawyer said that because of the close connection between Jabot and Chancellor, and the fact that Jack's father founded Jabot, Gibson felt that Jack would still have influence at Jabot and the only way to prevent that was to take Jack out of the picture all together. Katherine tried to reassure them that all Jabot decisions would henceforth be made by Jill, not Jack. Gibson and his lawyer said they would only be satisfied if Jack was fired from Chancellor -- that it was a non-negotiable condition. When Michael asked if they wanted to punish Jack personally, Gibson said that he was seeking justice. Katherine said she needed to consult with her colleagues, and Michael said they would get back to them as soon as possible. Gibson and his attorney left, and Michael asked Katherine if they should call Jack in.

In Jack's office, he was packing as Jill came in, teasing him about it being moving day. Jack wasn't in the mood for that, but Jill reminded him that the crisis at Jabot might finally be over, and that he shouldn't feel so sorry for himself -- after all, he was still CEO of Chancellor Industries. She realized how much Jabot meant to Jack, and he reminded her that he had spent most of his adult life there. He also said he wished he had never heard Gibson's name. She agreed and told him this didn't necessarily mean that he was out of Jabot forever. Jill's phone rang -- it was Katherine calling to tell her to come to the boardroom immediately. Jack wondered if there was another catastrophe to deal with. Jill said Katherine's call didn't bode well.

In the boardroom, Katherine and Michael filled Jill in on what happened at the meeting. Jill wondered why they didn't just shoot Jack and put him out of his misery. Katherine said that they didn't like the situation any more than she did, and Michael said that Gibson just wouldn't listen to reason. Jill said she just saw Jack packing and he already felt like his life was over. She asked Michael for a moment alone with Katherine. When he left, she asked Katherine what she was going to do. Katherine said in all her years of business she had never seen anything like this -- the Abbotts were like family to her and she had known Jack since he was a child. When Jill said that in spite of everything Jack had done she still had respect for him, Katherine agreed. Jill told her that she didn't envy her having to make the decision.

Later, Gloria stopped by Michael's office to find out what happened at the meeting -- Michael wondered how she even knew there was a meeting. Gloria kept pressing for details, but Michael grew increasingly suspicious and reminded her about attorney-client confidentiality. Gloria wanted to know if Gibson got everything he asked for. Michael asked her why she was acting this way -- that he was doing everything that he could do. She then asked Michael if Katherine wanted the lawsuit to go away whether she would have to give in to all of Gibson's demands.

At Crimson Lights, Jack walked onto the patio and found Sharon and a despondent Noah, who walked off. Jack asked if Noah was having a rough time and Sharon said they both were. He told her that he had seen Nick checking in at the club, but that he wouldn't offer any advice as he loved both of them, and hoped that whatever happened was the best for them. Sharon said she felt the same way about his situation -- that what was happening to him at Jabot was unfair. Jack's phone rang -- it was Katherine telling him she wanted to see him as soon as possible in his office at Jabot.

Jack went to his office at Jabot to find Katherine at his desk. He commented that she had already made herself at home, and she showed him a piece of paper. When he asked what it was, she said it was his resignation letter from Chancellor Industries! Jack was shocked.

When Sharon nearly broke down talking to Brad about Nick, Brad held her. Victoria saw them and came in, wondering what was wrong. Sharon told her that she and Nick had separated. Victoria promised to support Sharon, Nick, and Noah through this hard time. When Victoria wondered what had gone wrong and Brad seemed poised to tell her about Nick's affair, Sharon cut him off. Victoria understood that Nikki was probably giving Sharon a hard time; sometimes it seemed that her mother had forgotten divorcing her father all those years ago. Later, after Brad was gone, Victoria again promised family support from both herself and Brad.

Nick and Phyllis talked in the athletic club dining room. Phyllis regretted all the repercussions of their relationship. As she approached the topic of her pregnancy with Nick, saying that she had to tell him something he wasn't going to want to hear, Nick cut her off. He was certain that she wanted to tell him that she'd reunited with Jack. He assured her that he was glad she was finding happiness elsewhere. He intended to keep working on putting his marriage back together, but even though he was unhappy, he wished Phyllis only happiness. Phyllis let it go without telling Nick the truth about her pregnancy.

Jack reacted with disbelief when Katherine asked him to sign a letter of resignation from Chancellor Industries. He told her that giving in to Andrew Gibson and letting him make decisions about how Jabot and CI were run was a bad idea, and one Katherine wouldn't even consider if John were still in charge. Katherine pointed out that John wouldn't have made the same mistakes that Jack had. Jack refused to sign the letter, and Katherine said that in that case, no matter how much she regretted the decision, she had to relieve Jack of his duties. Jack wondered if she really thought he'd be that easy to get rid of.

While Katherine and Jack talked, Gloria tried to get Michael to tell her what was going on, but Michael used attorney-client privilege as a means for stonewalling his mother. He told Gloria that all of this was her fault. Her petty grudge against Jack for being mean to her had resulted in the downfall of a proud company and a situation that might eventually leave her penniless--not to mention that she'd caused the death of an innocent woman. Gloria refused to believe that Mrs. Gibson had died as a result of Jabot products, and she insisted that she had great plans for Jabot. Michael told her that he wanted no part of her plans and slammed out of the office.

Later, Gloria went to Crimson Lights in time to see Mackenzie and Kevin talking. Although Kevin was still upset that Mac was leaving for New Orleans, he thanked her for the way she'd changed his life. When everyone else had hated him, Mac had stood up for him and believed in him. He would never forget all that they'd meant to each other. Mac was glad if she'd helped him, and she promised they'd see each other again. After Mac left, Gloria tried to reassure Kevin that he was better off without Mac. Now he could open himself up to someone who would appreciate him and love him back. Kevin wasn't ready to hear what Gloria was saying.

Katherine and Mac shared a tearful goodbye at the Chancellor house. They reminisced about finding each other, then Katherine assured Mac that this would always be home. Mac was just going on a journey and would have a chance to work closely with her father and do some good in New Orleans. But a part of her would remain in Genoa City, as well. After a final hug, Mac left for the airport.

Michael went by Phyllis's apartment to take her some prenatal books and ice cream. Phyllis thanked him again for being such a good friend. Clearly, Lauren had helped him become an even better person than he already was. Michael promised Phyllis that no matter how many mistakes she thought she'd made, she would never be alone. He and Lauren and Phyllis would be raising their children together, and Phyllis was going to be a great mother.

Daniel ran into Jack at the athletic club and sat down to talk to him for a few minutes. He offered his sympathy for what Jack was going through with his career, and he assured Jack that he'd always stay a supportive friend. Jack said he sometimes felt that Phyllis was the only bright and positive part of his life. Jack wondered why Daniel looked uncomfortable when Phyllis's name came up. Was Daniel no longer supportive of a relationship between Jack and Phyllis? Daniel said that Phyllis had been at her best when she was with Jack. Daniel wished they'd never broken up, and he would always be in favor of their reconciliation.

Brad confronted Nick at the athletic club about what Sharon was going through. Nick told him that it was none of his business, and Brad said that someone needed to straighten Nick out. Nick said that he and Sharon were having marital problems after ten years of a single marriage for both of them--a marriage that had begun when they were very young. Brad, on the other hand, was on his fifth marriage. What advice did he really think he could offer Nick? As their discussion got more heated, Nick took a swing at Brad. The two men were pulled apart, and Brad loudly denounced Nick for all the months he'd been having an affair with Phyllis. Neither man realized that their argument was being witnessed by Daniel and Jack, and Jack's expression was shocked as he heard Brad's accusations.

Michael tells Katherine that it won't be easy getting rid of Jack. If Jack won't leave on his own accord, maybe Katherine and Jill should buy him out. Jack comes in and asks if they are enjoying trying to find a way to get rid of him. He's not going to make things easy for them.

Jack can't help overhearing Brad say that Nick is sleeping with Phyllis. When he asks Nick, Nick tells Jack that it's over. Jack is so angry he punches him in the face. Nick calls Phyllis and warns her about Jack. She hangs up the phone. Jack comes to see Phyllis. He says that Nick sends his greetings. Phyllis tries to apologize to Jack but Jack is furious. He feels like a fool, helping Phyllis in her time of need when she was lying to him all along. Phyllis says that she still loves him. Jack says it's too bad; they could have been great together.

Ashley thanks Victor for helping Jabot get connected with NVP. Victor says that Ashley is her friend, and he wants to help her.

Jack goes to Ashley in shambles. He tells Ashley about Phyllis, and says that the only people he can trust in this world are his family.

Sharon sees the bruise on Brad's face and wonders what happened. Sharon goes to Nick and is angry that he didn't tell her about the fight with Brad. She accuses Nick of throwing the first punch. She says that Nick is a terrible role model for Noah. Nick is tired of Sharon always accusing him.

J.T. decides to go to Victor to tell him the news about Brad. Once Victor sees that Brad stole the identity of Brad Carlton, he tells Brad that he doesn't want J.T. to investigate any further.

Victor tells Victoria, Nick and Brad that there is an open position on the Board of Newman Enterprises. Victor wants Brad in the position.

Paul and J.T. went to Cleveland to try to discover more about Brad Carlton's past. They found one of Brad's old teachers, who remembered him well and spoke highly of him. But when he showed them a yearbook picture, it was of the real Brad, not the man that was known as Brad in Genoa City. Later, they visited a church and went through some old church records looking for information on either boy. They found a photograph of a church softball team, and although it didn't have names with the players, they recognized the real Brad Carlton and also spotted a boy who might have been a young version of the person they knew as Brad.

Nikki arrived at Newman in time for Victor to share his news. He wanted to put Brad on Newman's board of directors. His family couldn't understand Victor's new attitude toward Brad, and Victoria wondered if her father knew they were planning to put Brad on the board after Victor had fired her and Nick as CEOs. Victor said that he did know, and this was his way of reuniting his family, just as accepting Victoria's marriage had been. Nick wasn't in favor of Victor's decision and walked out of the meeting.

Victoria followed her brother and asked him what was going on. Brad came with her, and Nick said he'd talk to Victoria only if Brad left. Brad said he had calls to make and left them alone. Nick told a shocked Victoria the truth about Phyllis. His sister couldn't believe he hadn't learned his lesson after Grace, but Nick said what he and Phyllis shared wasn't the same. It hadn't been just about sex. Victoria said she didn't blame Sharon for wanting a separation.

Drucilla called Lily to find out her plans for prom and graduation, and Lily said she wasn't going to either, then cut off the phone call. Neil was looking forward to seeing his daughter and Devon graduate together, and Dru warned him that it might not be happening. Later, Neil was summoned to Victor's office, where Victor told him about the open board seat. Neil thought Victor was about to offer him the position, and he was crushed when Victor said he was putting Brad on the board because he was now family. Neil wondered how he could ever again trust Victor's assurances that he was valued at Newman. Victor told Neil that the next time a board seat came open, Neil would be the one who filled it.

When Drucilla found out what Victor had done, she stormed into his office and confronted him. Victor told her that it was simply a decision based on family loyalty. He told her that he'd had a difficult time accepting Brad, but once he did, it had brought peace to their family. Perhaps Dru should consider doing the same thing and accept Daniel as her son-in-law. Meanwhile, Neil ran into Brad on the elevator. He commented on how Brad had managed to marry his way into a seat on the board at Newman and asked what his secret was. Because clearly, the smartest and hardest-working person at Newman wasn't being rewarded as Brad was. When Neil walked off, Brad watched him with a little smirk on his face. The smirk was still there later when the Newmans reconvened to drink champagne to toast Victoria's marriage and Brad's new board seat. Nick watched Brad with distrust and didn't join in the toast.

Colleen told Lily and Daniel that she was going to be waitressing for Gina at the athletic club because she couldn't keep taking handouts from her father. She was surprised to hear that Lily didn't want to go to the prom, and Daniel said they really couldn't afford it. He suggested they do something more romantic, like having dinner alone at the club on prom night. Lily liked his idea. At first she resisted Daniel and Colleen's argument that she should attend the graduation ceremony. Daniel reminded her that everyone had thought they'd drop out of school after they got married, but they hadn't. She deserved to walk across a stage and get her diploma; wouldn't she at least do it for him? Lily finally agreed.

Neil was angry when he found out that Dru had talked to Victor. He asked her to stay out of his business. In fact, he wished she'd stay away from him altogether. While they were arguing, Lily came in and begged them to stop. She told them that she'd changed her mind and decided to go through her graduation ceremony after all. For a brief moment, the three of them seemed almost happy again.

Katherine refused to accept Ashley's resignation in lieu of Jack's resignation. Not only would it not satisfy Andrew Gibson, but it would be a blow to Jabot if Ashley left. Katherine said that she was going to the prison to talk to John and tell him what was going on. Ashley said she'd see her father tomorrow, too, and find out what he thought about things. She also told Jill and Katherine that she intended to speak to the Chancellor board on her brother's behalf.

John was distressed to hear everything that was going on at Jabot and Chancellor. He thought that one reason Jack was so determined to stay on was because he felt like he'd failed his father. John begged Katherine to find a way for Jack to leave without losing his dignity. Katherine wanted to make John happy, but she said she'd begun to lose faith in Jack as CEO of Chancellor after all the bad decisions he'd made.

Jack was touched by what Ashley was willing to do for him, but he said it wouldn't do any good. Ashley said that Jack had always looked out for her, and she wasn't going to turn away from him now. One way or the other, she would fight with him, because what Gibson was asking for wasn't fair.

Katherine returned to Jabot and told Jack that she'd seen his father. She was giving Jack one more chance to resign voluntarily. He had twenty-four hours to think about it, and she told him not to be rash. After talking to her, Jack went to see his father, who told him that sometimes it took more courage to walk away than to stay and fight. Jack promised to think about it, but he hadn't yet made up his mind about resigning.