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 eight 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 had told Jack to disappear for a while but he had 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. Jill would be reporting directly to Katherine, and Jack's duties at Chancellor Industries no longer involved Jabot Cosmetics.
Later, Jack was complaining to Phyllis about what he felt was Katherine's shabby treatment of him. Outside the office door, Gloria was eavesdropping. Jack questioned Katherine's loyalty to him -- Phyllis advised him to cool off and said that he would eventually be in charge at Jabot again. Jack said he didn't think Jabot would survive Jill's leadership -- which Gloria was particularly interested to hear. Phyllis said that Jill put in long hours but Jack countered by questioning Jill's leadership skills through the 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 -- because his attitude wasn't going to inspire forgiveness. Jack wondered sarcastically if he could inspire forgiveness by opening a recreation center, and Victor said it had worked for him.
Gloria ran to Jill's office to report about the conversation she'd overheard. Jill initially defended Jack -- she said that Jack wanted what was best for Jabot. When Gloria told Jill that Jack had 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. Gloria's talk swayed Jill who thanked Gloria before she ran off to meet with Katherine about the meeting with Mr. Gibson later that day. 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.
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 felt that reassigning Jack was not enough. Gibson said Jack was the CEO of the company that owned 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 entered, told Victoria she looked wonderful, and shook hands with Brad. He told Victoria that he was reinstating her and Nick as co-CEOs at Newman Enterprises.
When Victoria asked Victor why, he told her that since Nikki's shooting, he had reevaluated 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 he 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 it 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 CEOs. Phyllis was excited, but Nick said he was tiring of all the changes. Phyllis said sometimes change was 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 discussed 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 might 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 -- because he thought she couldn't bear children -- he said 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 because Jack loved kids. Phyllis then told him about her affair with Nick. It had started the night of Michael's wedding -- and they had sworn it wouldn't happen again -- but it had, as much as she'd tried to fight it.
But then, Phyllis said, Daniel had walked in on them and Sharon had 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. He pointed out 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 that 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 because there was a child involved. Phyllis reacted to Victor's statement.
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. Dru asked if Neil had seen the chip on Lily's shoulder. Neil responded that Lily was devastated by a situation that was not of her own making. Neil wondered why he was bothering, because Dru wasn't even listening, but she said she was listening all right -- and that things sure had worked out well for Lily, because she was daddy's little girl again. She stormed out as Daniel walked in.
Daniel told Neil that he understood what Lily was going through, since his biological father was just some guy that Phyllis had met in New York. Daniel said that even though Lily was not Neil's 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 hadn't had a mother as he grew up because Danny had been 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. Lily said that she hadn't meant for it to happen -- that it was all an accident. Dru wasn't quite sure that sending the email meant for Daniel to Neil had been 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-CEOs at Newman. Neil was upset, but Victor said he had changed his mind. Victor also said 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 he left.
Lily took Daniel his lunch and told him about the mean things Dru had said to her. She then saw Neil sitting forlornly in his office; she said goodbye to Daniel and went in to talk to Neil. He 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 had 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 that 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 Nick was really moving out, Nick reassured his son that although he was, they could still spend plenty of time together -- he would still be coaching Noah's team, and Noah could stay overnight with Nick 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, insisting that she wanted to handle it. Nick left.
At Newman Enterprises, Phyllis dropped a book about pregnancy, and Daniel noticed it -- Phyllis covered by saying she had gotten 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 had accidentally sent to Neil and how Lily knew that Neil wasn't her biological father. He also told her that Neil was really upset with Dru, and he was afraid it 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 it the wrong way. She asked 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 any longer and that it was Danny's fault also. His concern at that moment was with Lily -- that it was better to know the truth than to wake up one morning and find out your whole life had 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 had told her Nick was moving out and sje expressed how bad 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.
Nick and Phyllis 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 had really bad repercussions for Noah and had 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 went 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 that day, 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 -- 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'd had and they hugged. J.T. walked out without saying a word to Colleen.
Colleen went over to Mac and asked if Mac knew where J.T. had gone. Mac didn't. Mac 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 didn't know what he wanted, even when he had 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, Gloria asked Kevin 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, 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 had founded Jabot, Gibson felt that Jack would still have influence at Jabot. The only way to prevent that was to take Jack out of the picture altogether. 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 walked 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 it didn't necessarily mean that he was out of Jabot forever. Jill's phone rang -- it was Katherine calling to tell her to go 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 had 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 had just seen Jack packing, and he already felt like his life was over. She asked Michael for a moment alone with Katherine.
When Michael left, Jill asked what Katherine was going to do. Katherine said in all her years of business, she had never seen anything like it -- 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 said that she didn't envy Katherine having to make the decision.
Later, Gloria stopped by Michael's office to find out what had happened at the meeting. Michael wondered how she even knew there had been 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 had gotten everything he'd asked for. Michael asked her why she was acting that way, insisting that he was doing everything that he could do. She asked Michael whether Katherine would have to give in to all of Gibson's demands if she wanted the lawsuit to go away.
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 and found 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 while talking to Brad about Nick, Brad held her. Victoria saw them and walked in, wondering what was wrong. Sharon replied that she and Nick had separated. Victoria promised to support Sharon, Nick, and Noah through the 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 before. 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 Chancellor 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 it was all 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 Mac 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. Hopefully 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 it 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. However, 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 had been. Michael promised Phyllis that no matter how many mistakes she thought she'd made, she would never be alone. He and Lauren would be raising their children together with Phyllis, 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' name was mentioned and whether Daniel was 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 said 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 first 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. Nick asked what advice Brad really thought he could offer Nick.
As Nick and Brad's 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 Daniel and Jack were witnessing their argument, and Jack's expression was shocked as he heard Brad's accusations.
Michael told Katherine that it wouldn't be easy getting rid of Jack. If Jack wouldn't leave on his own accord, maybe Katherine and Jill should buy him out. Jack entered the room and asked if they were enjoying trying to find a way to get rid of him. He was not going to make things easy for them.
Jack couldn't help overhearing Brad say that Nick was sleeping with Phyllis. When he asked Nick, Nick told Jack that it was over. Jack was so angry that he punched Nick in the face. Nick called Phyllis and warned her about Jack. She hung up the phone. Jack went to see Phyllis. He said that Nick sent his greetings. Phyllis tried to apologize to Jack but Jack was furious. He felt like a fool, helping Phyllis in her time of need when she had been lying to him all along. Phyllis said that she still loved Jack. Jack said it was too bad; they could have been great together.
Ashley thanked Victor for helping Jabot get connected with NVP. Victor said that Ashley was her friend, and he wanted to help her.
Jack went to Ashley in shambles. He told Ashley about Phyllis and said that the only people he could trust in this world were his family.
Sharon saw the bruise on Brad's face and wondered what had happened. Sharon went to Nick and was angry that he hadn't told her about the fight with Brad. She accused Nick of throwing the first punch. She said that Nick was a terrible role model for Noah. Nick was tired of Sharon always accusing him.
J.T. decided to go to Victor and told him the news about Brad. Once Victor saw that Brad had stolen the identity of Brad Carlton, he told Brad that he didn't want J.T. to investigate any further.
Victor told Victoria, Nick and Brad that there was an open position on the board of Newman Enterprises. Victor wanted 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. However, 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 had been planning to put Brad on the board after Victor had fired her and Nick as CEOs. Victor said that he did know, and that 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 went 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.
Dru called Lily to find out her plans for prom and graduation. 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 had become 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 opened, Neil would be the one who filled it.
When Dru 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 had, it had instilled peace in their family. He suggested that 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 Brad's secret was. Neil said 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, Lily 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. He asked if she would 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 walked 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 the next day, 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. 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 and saw 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.