Maddie confronts Will about his purchased term paper and tries to persuade him to tell Gwen the truth. However, when Gwen and Casey join them, Will does not tell Gwen. Casey thrills Maddie by inviting her to the graduation party.
Luke arrives home and is stunned and hostile to find Damian, his father, there. After Luke goes upstairs, Damian asks Lily why Luke is so unhappy, and Lily tells him that Luke "thinks" he is gay.
In the basement of Jack and Carly's house, Dell tells them that the last time he saw his partner, May a Gold, she was on her way to meet Nick Kasnoff with the 13 rubies. At the same time, Carly and Katie find Nick in Katie's car, which he has hot-wired. They get in the car with Nick, and he pulls a gun and forces Carly to drive. Jack and Mike arrive in the garage a few minutes later to find the car gone, with Carly's purse and the car keys on the garage floor. The men realize that Nick has taken the girls hostage, and they fear that Nick might kill again. When Nick directs Carly to turn on a dirt road, Carly deliberately wrecks the car.
Katie crawls out of the crashed car and realizes Carly and Nick are out cold. She tries to save Carly but Nick comes to. Carly knocks him out again and urges Katie to run for help, since Carly is trapped and can't move. Katie calls Jack and tells him that Nick still has Carly! Jack goes searching for his wife, while Mike finds Katie. Jack locates the crashed car...but no sign of Nick or Carly. Maddie sees Will's grade on the Calculus final and realizes he cheated, then she sees Nate with Jade and figures out how he did it. Gwen, meanwhile, wonders why Will isn't on top of the world...and what Maddie's problem is with Jade? Damian wonders if maybe Lily and Holden's parenting is what drove Luke to question his sexuality. Damian offers to help Lily with her problem. Lily says she'll consult with Holden, and Damian leaves. Luke apologizes for accusing his mother of having him followed, and reiterates that he doesn't think he's gay, he knows he is. He adds that he also knows, if it came down to a choice between him being happy and being gay, what Lily would choose. At the Lakeview, Damian has a reunion with Lisa. After, Lily goes to Damian and says she will accept his help – without asking Holden.
Paul tells Meg he's decided to be a part of his child's life – and he hopes the decision hasn't cost him Meg. Meg says that she loves Paul, and promises to love his child as her own. Meanwhile, Emily takes the news quite calmly. Because, as she explains to Henry, she's realized this baby can bring her and Paul back together. And now she knows just how to get his attention. While hiding in a cave with a sleeping Nick, a weak and injured Carly tries to call Jack. She gets through, but Nick wakes up. Carly tells Nick if he doesn't get her some help he's going to be guilty of two murders, then passes out. Nick notices that Carly's wedding ring is missing and realizes she dropped it as a clue for Jack. He says Jack will find her soon enough and decides to make a run for it alone. Margo finds the ring and brings it to Jack. Barbara attempts to take over Jennifer's wedding. She also tries to take over her daughter's life, saying she'll be happy to arrange secret meetings between Jen and Paul, with Dusty never being the wiser. Jennifer reminds Barbara that cutting Paul out of her life wasn't Dusty's idea, it was Jennifer's. Later, when Paul sees Jennifer across a room, he makes no move to approach. Dusty takes Johnny to the hospital for a shot and runs into Lucy.
Lucy reveals to Dusty she is back in Oakdale to stay. He introduces her to her half-brother, Johnny. Lucy wonders why Dusty has Jennifer's baby. Dusty replies that he and Jen are getting married. Lucy is hit hard. Later, she runs into Jen. As Carly struggles to stay awake in her cave, Jack tells Margo he's certain the dropped wedding ring is a clue. He follows his compass north. True north. Jack's faith is rewarded as he finds his wife and a delirious Carly kisses him. Meanwhile, Mike first can't believe the truth about Nick, then blames himself. Nick calls Mike and swears he never meant to hurt his cousin. Mike tells Nick to wait for him and rushes out. Katie overhears. Mike tries to convince an on-the-run Nick to turn himself in, but Nick refuses and attacks his cousin. Katie walks in, sees Nick beating Mike and, when he turns on her, picks up Nick's gun and shoots him. Emily talks Henry into calling Paul on her behalf. Paul is with Meg, who has just tried to talk Jennifer into forgiving her brother, but got a lecture in return. Henry wants Paul to see Emily. Paul refuses, but Meg urges him to go. Emily informs Paul that she's changed her mind and decided to have an abortion after all.
Damian tells Lily he wants to try to talk to Luke, and when Luke comes home, Lily makes an excuse to leave the room and go upstairs. Damian tells Luke that he doesn't want to try to change him and that he wants to be friends with him if he can't be a father to him. He asks Luke how he felt when Holden and Lily separated, and Luke says they didn't give him any warning that was coming, they just told him to deal with it. Damian points out that this is pretty much the same way Luke told Lily that he was gay: here it is, now deal with it. Luke sees Damian's point. Damian asks Luke's permission to tell her what they've discussed, and Luke says okay but wants to know "then what?" Damian says he thinks it would be good if the 3 of them sat down together and had a real conversation about things. Luke agrees, so Damian goes to tell Lily. He tells her that he agrees with her that Luke is confused and says that they need to let Luke know that they are there for him. He and Lily go to the living room and sit down to talk to Luke, who comments on how "weird" this is; they agree just as Holden walks in, demanding to know if someone is going to tell him what's going on.
Lucy Montgomery runs into Jennifer at the Lakeview and tells her she's already seen both Dusty and Johnny at the hospital. She tells Jennifer that she'll be working at Memorial and living at the Lakeview, and she apologizes to Jennifer for all the horrible things her father, Craig, did to Jennifer. Jennifer says she doesn't hold Lucy responsible for any of that, but when Lucy says she'd like to be a part of Johnny's life, since he's her half-brother, Jennifer is obviously taken aback. Lucinda walks in and hugs Lucy, admitting to her that she knew she was coming to town because Sierra had told her. Jennifer leaves, and Lucy tells Lucinda that she has already run into Dusty and knows that he is engaged to Jennifer. Lucinda asks if she's okay with that, and Lucy says she is, that she was the one who left Dusty in the first place. Lucinda still thinks that Dusty is the main reason why Lucy came back to Oakdale instead of going somewhere else to do her internship and that Lucy's not completely over Dusty. Lucy denies it and changes the subject to Lucinda's health. After giving Lucy an update on her health, Lucinda tells her that she's actually lonely and would love it if Lucy would come and stay with her instead of staying at the hotel. Lucy agrees and goes to the desk clerk to have her bags brought back down, but when he asks if she wants to cancel her whole reservation, she says no, that she thinks she'll keep the room as a place to escape to.
Jennifer finds Dusty and Johnny at the hospital and tells Dusty that she ran into Lucy and that she's going to be living at the Lakeview. Dusty asks her if that's a problem, and although Jennifer says it isn't, it's clear to Dusty that it is. He tells her that he's not jealous of Mike Kasnoff, even though Mike was married to Jennifer, and she says that's because Mike was always really crazy for Katie, whereas she doesn't think Lucy is over Dusty completely. He asks if she's jealous, and she says it's not jealousy, it's a lack of trust in the future working out for her. She tells him that Lucy wants to be a part of Johnny's life and that worries her because of Craig, but Dusty says Lucy will be too busy to see Johnny very much and that she would never resort to spying or evil-doing on behalf of her dad. He tells Jennifer that Lucy being back is a good thing, because it brings out the "redhead" in Jennifer.
Jack comforts Carly in the cave, and they kiss. The medics arrive and put Carly on a stretcher, and she is taken to Memorial Hospital. Jack tells her to keep fighting. Carly asks Jack how he found her, and he holds up her wedding ring and says she left good clues. Then he tells her there are easier ways to get his attention; she says she knows that and has tried them all. She says having him here feels right, and he replies, "I know." Jack leaves the room so the doctor can change the dressing on Carly's leg.
Near Myer's Lake, Nick attacks Mike in the fishing cabin with an oar; Katie walks in to find Mike crumpled in a heap on the floor and Nick with the oar in his hand. She sees his gun lying on the floor and grabs it, firing straight into Nick's chest as he comes towards her. Nick falls, and Mike gets up and runs to him. He tells Katie to call 9-1-1, and he tells Nick to hang on. Nick tells Mike he's sorry for hitting him. Katie is horrified that she has shot Nick and tries to apologize to Mike, saying she thought Nick was going to kill him. Margo arrives with the ambulance right behind her. Mike leaves to follow the ambulance to the hospital, but when Katie tells him she's coming with him, he yells at her, "No, I don't want you!" Margo asks Katie what happened, and Katie tells her the story.
As Jack comes out of Carly's hospital room, he sees Mike, along with Nick on the gurney. He asks Mike who shot Nick, but Mike doesn't answer; instead, Katie arrives and tells Jack that she's the one who shot Nick and now her life has changed forever. Jack tells her not to worry about what Mike might have said to her, because he's in shock right now, and that soon Mike will come out to tell them how Nick is doing. Mike does come out, but he tells them that Nick is dead.