Katie consults with Eli King at Memorial Hospital, for help in interpreting the DNA test which implicated Mike. Eli tells Katie that the DNA could belong to a close family relative of Mike (including a first cousin). Meanwhile, Mike Kasnoff goes to the jeweler to pick up his St. Christopher's medal and finds that it was delivered to his "wife."
While holding Johnny, Dusty gets down on his knees and proposes to Jennifer. She joyfully accepts. Lucinda passes them in the park and hears their news. She offers to throw an engagement party for them.
Meg is in the process of moving back into Paul's apartment, when Susan comes to collect Emily's things. Susan tells Meg that Emily has been committed to the psychiatric ward. Paul, at the hospital, gives Emily the divorce papers to sign. However, after seeing the sonogram, Paul puts the parental rights papers back in his pocket. When Emily asks about the relinquishment papers, Paul lies and tells Emily that the papers are not ready at the lawyer's office. After Paul leaves, Henry sneaks in to visit Emily. Emily tells Henry that she is worried that Paul does not intend to sign the papers. Henry calls Jessica Griffin's office and finds that Paul picked up both sets of papers that morning.
Henry bursts in on a half-dressed Paul and Meg, wondering why Paul didn't give Emily the relinquishment papers he promised. Meg realizes Paul lied to her and smacks him. Paul takes the blow then asks Meg if she'd consider raising his child with him. Meg isn't sure if she can. Will feels guilty about the "A" he got on his Internet-purchased paper. Gwen is thrilled, but Maddie is suspicious. Later, Will tells Jade he wants to confess his deception. Besides, he'll never pass his calculus final, anyway. Jade says he will if he knows the answers in advance.... Katie learns that Nick knows about her getting the medallion and rushes to tell Mike, but Nick beats her to it. Mike reminds Katie that she promised to stop listening to Carly's insinuations about Nick. Katie shows Mike the two medals and insists she only went snooping to protect Mike. Mike points out that sounds a lot like Carly's usual line about lying to Jack. Katie tells Mike it doesn't matter anyway, since Jack checked out Nick's alibi and it's solid. Mike promises Katie that he'll take care of Nick. But, instead of calling his cousin, Mike calls his brother to talk about that trip Nick took thirteen years ago....
Jennifer and Dusty tell Barbara they no longer want Paul in Jennifer's life. Barbara tells Jennifer she will support her decision. Lucinda tells Dusty that Jennifer shouldn't have to choose between him and her brother. Jennifer tells Dusty's she will keep her promise to him, besides she doesn't want Paul trying to run her life. Paul tells Meg he wants her to help raise his child, but she needs more time. Meg goes to see Emily and tells her Paul won't give up his rights. Emily realizes Paul didn't choose Meg over his child. Emily sees this as a sign. It appears Emily believes she and Paul may have a future. Barbara tells Paul about Jen and Dusty's plans to get married. Jade lashes out at Luke about coming out of the closet. She quickly backs off when she sees Will. Luke tells Will about his problems, and tells him it's not good to keep secrets from the people you love. Luke thinks someone is watching him. Lily tells Holden she wants Luke to see a therapist. She isn't sure he's really gay.
Lucinda's engagement party for Dusty and Jennifer begins. Paul crashes the party only to have Jen tell him she wants Paul out of her life permanently. Crushed, Paul goes home and tears up the papers giving up custody of Emily's baby. Meanwhile, Will gets a call from Jade saying she has those math answers for him, and leaves the party. Luke catches a glimpse of the man spying on him and comes home to accuse Lily of hiring someone to spy on him! Lily denies, but later sees Luke's stalker – Damian! Mike reminds Nick his alibi for the summer Maya was killed doesn't mention that he took a few days off from "Outward Bound." Meanwhile, Carly is attacked by a bum in her basement. Katie saves her and the women manage to get him bound and gagged. The bum, Del, tells them he's Maya's old partner, just out of jail. When he read about her body being found in the basement, he came looking for the rubies. Del says Maya was going to meet some guy named Kasnoff when he last saw her – so obviously Kasnoff killed her! Katie sobs about how horrible this is for Mike, but Del corrects her. Not Mike...Nick. At the police station, Nick offers Hal his resignation.
At Java, Jade tries to give Will the answers to the calculus exam, but he doesn't want to take them. Jade tells Will that Gwen won't be proud of him if he doesn't graduate from high school. Gwen and Maddie arrive, and Gwen tells Will that Lisa's having a graduation party at Crash. Gwen then tells Will how proud she is of him for working so hard to graduate. Casey arrives and introduces himself to Jade, then he tells Will that the calculus exam was really hard. Will leaves, and Jade follows him, again trying to give him the cheat sheet. Will gives in and takes the cheat sheet from Jade and leaves.
Meanwhile, Casey tries to talk Gwen into performing solo at Crash; they leave to go check out some new sound equipment at the club, while Maddie waits at Java for Will to return. She hears a cell phone ringing and picks it up; a woman asks for Will Munson, and Maddie says she's a friend of his. The woman says she needs to verify a $60 credit card charge for the purchase of a biology paper on ecosystems from an online essays Web site. When Will returns to Java, he sees Maddie looking at a Web site on her laptop, and she tells him he ought to check it out, because you can buy research papers on it. She then says that Peggy from billing called to tell him he owes them $60 for his paper.
At the police station, Nick tells Hal he's resigning, but when Hal questions him about where he's going, Nick is evasive. Jack overhears their conversation and also wonders where Nick is going, but Nick again refuses to answer. Hal tells Nick he has 48 hours to give him his new contact information, or he'll send people out to find Nick. Hal leaves, and Jack tries to get Nick to tell him why he's really leaving, but Nick says it's because Carly won't quit trying to get him in trouble.
Carly and Katie have Del tied up in Carly's basement. Del says that the man who murdered Maya Gold was named Nick Kasnoff, not Mike Kasnoff. Katie tries to call Jack on her cell phone but can't get any reception; Carly tries to go upstairs to get her phone, but the stairs collapse, having been hacked at by Del in his attempts to find the rubies. Carly is okay and decides she'll climb out the basement window and go get help. She tells Katie to keep a close watch on Del. Katie's cell phone rings, and it's Mike, looking for her. She tries to tell him where she is and what's happening, but the connection is bad, and then Del, who has managed to untie himself, grabs Katie, then tells her he's getting out of there. She climbs out of the same window that Carly went through as Del goes up the broken stairs.
Carly goes to the police station looking for Jack or Hal, but neither of them is there. She asks them to page Jack for her and then leaves, going to Mike's place to try to get his help. Katie comes running up to the house and tells Carly that Del got away. They go in, but Mike isn't there. They hear a car starting in the garage and go out to find Nick trying to take Katie's car. They both get in the car, and Carly says, "Going somewhere, Nick?"
Jack gets to Carly's place just as Del is leaving and demands to know who he is and what's going on. Del makes up a story about being mugged, but then Mike comes rushing in, grabs Del, and asks him where Katie is. Del then tells Jack and Mike that Katie and Carly attacked him while he was looking for the rubies, and Mike goes to the basement to see if Katie's still there. When he comes back upstairs, he hears Del telling Jack that Katie had thought her husband killed Maya, but it was a different Kasnoff. Mike tells Jack he means it was Nick.
Luke goes to see his grandmother, and he tells Lucinda that Lily wants him to see a shrink and that he thinks Lily is having him followed. He's worried that Lily will never accept him for who he is. Lucinda tells Luke that Lily is just afraid for him, that he'll suffer because of being gay and that his life will be hard. Luke wants to know why it's so much easier for Lucinda to accept that he's gay than for Lily; she asks him if she can change the fact that he's gay, and when he says no, she replies, "Then I accept it." Luke tells her he'd actually been more afraid to tell her he was gay than to tell his parents; Lucinda is stunned by this and tells Luke that one thing having cancer taught her is that it's most important to simply love the people in your life.
Damian shows up at Lily's house without warning, and she isn't happy to see him. He assures her that his life has changed and that he's no longer a marked man with enemies who want to see him dead. She tells him she doesn't think she should just take his word for that. He asks about Luke, telling her he didn't find out that Lily was trying to reach him until after Luke had his kidney transplant. He says that he wants to be sure Luke is okay, even though he looked okay to him. Lily realizes Damian is the one who has been following Luke. She tells Damian that Luke actually accused her of hiring a private investigator to follow him, and confused, Damian asks why on earth he'd think such a thing. She tells him it's normal teenager stuff, but he senses there's something more that Lily isn't telling him about Luke. Damian tells Lily that he wants Luke to have a Grimaldi family signet ring that has been in his family for generations, and that one day, when Luke is married, he can give it to one of his children, and Damian will know that he will always be a small part of Luke's life. Again, Damian can tell from Lily's reaction that something is bothering her about Luke. Just then, Luke comes home.