In their suite at the Genoa City Athletic Club, Phyllis and Nick awoke after a night of lovemaking. While Nick showered, Phyllis discovered that Sharon had phoned Nick three times. In disgust of Sharon's blatant persistence, Phyllis deleted Sharon's messages. Moments later, Victor phoned and summoned Nick to visit him at the jail. Downstairs in the club's dining room, Jack ate breakfast alone as he recalled Sharon's demand the night before that he pack his bags and leave. Nick approached Jack and accused him and Adam of forging Victor's diary. Jack taunted Nick and mentioned that Victor had returned for Ashley's sake instead of that of his children. Phyllis intercepted a blow Nick was about to strike at Jack's smug face. Phyllis reminded Nick that he was to meet with Victor. Jack said, "What a role reversal; your father needs you."
After Nick left the club, Phyllis returned to Jack's table. Jack railed at Phyllis and claimed she carried through with her threat to disclose to Sharon his credit-card statements that detailed motel charges and payments to an escort service. Jack added that Sharon had kicked him out. Phyllis explained that she wasn't thrilled with Jack's predicament because Sharon would surely threaten her marriage to Nick. Phyllis didn't admit to the disclosure and said she wasn't the only person who wanted to get back at Jack. Phyllis pressured Jack to confess that he was directly involved with the diary. Jack denied Phyllis' allegation. Phyllis told Jack that she used to feel sorry for him.
At the Abbott mansion, Ashley arrived and searched for Jack. Sharon announced that she had kicked him out. Ashley asked Sharon if she had ousted Jack because of his involvement with Victor's forged diary. Sharon explained that Jack had claimed to be a sex addict. Ashley said she didn't believe the charge. Sharon claimed she had concrete proof. Ashley was shocked and insisted that Jack wouldn't seek the company of prostitutes.
Brad phoned Sharon at home and offered to bring breakfast. After Brad arrived, Sharon told him that she and Jack were over. Brad commiserated with Sharon and added that Jack was a jerk. Sharon said she stayed because she thought Jack would change, but he had made her life a mess. Brad praised Sharon for staying with Jack even though he cheated and lied to her. Phyllis phoned, and Brad covertly reported that he offered Sharon a shoulder on which to cry. Phyllis offered to arrange a business trip to New York for Sharon, and she signed Brad on as a travel partner.
Ashley tracked Jack down at the club and demanded to know what was going on. Jack lied that his sordid addiction made him feel shameful, but he couldn't bring himself to seek help. Ashley refused to believe her brother, and she told him he had gone too far. Ashley asked Jack why he had forged the diary that threatened to ruin Victor's life. Jack insisted that he had only introduced Adam to the diary's publisher. Ashley, through gritted teeth, warned Jack that Victor would come after him, and she vowed not stand in Victor's way. Ashley slapped the table and rattled the china as she rose and stomped away.
In the jail's visitation cell, Victor told Nick about the fellow prisoner who admitted he had forged the diary under Jack's direction. Victor explained that Michael knew about the confession, but the DA's office wouldn't become involved until Jack's accomplices could be investigated. Nick named Adam, and Victor added that Heather Stevens might also be involved. Victor claimed that Jack, Adam, and Heather wanted to destroy him, and he intended to return the favor. Nick pleaded with his father to use the prisoner's confession to get himself released, but Victor insisted he would clear his name while he remained imprisoned. Nick told his father he should return as head of Newman Enterprises, but Victor assured Nick that Newman Enterprises was his son's birthright and legacy. Nick, deeply touched by his father's restored confidence in his abilities, told his father that he would do anything Victor needed.
Sharon ran into Nick at the coffeehouse and asked why he had not returned her messages. When Nick asked what was going on, Sharon threw her hands in the air and expounded on Jack's misdeeds. Nick was shocked after Sharon told him that Jack had cavorted with hookers in sleazy motels. Sharon added that someone arranged to have evidence of Jack's alleged sex addiction delivered during dinner and in front of Michael, who had come to the club to question Jack about the forged diary. Sharon said she had thrown Jack out, and Nick offered to help his ex-wife whenever she needed him.
At the coffeehouse, Nick reported to Phyllis that he and his father renewed their relationship. Phyllis was elated. Nick explained that Victor had proof of Jack's involvement with the forged diary. Phyllis noticed that Nick seemed saddened. Nick explained that Jack had broken Sharon's heart after he admitted numerous indiscretions. Nick said he wanted to help Sharon, but Phyllis suggested that she could arrange a business trip to New York for Sharon, so she could get her mind off her problems. Nick agreed.
At Crimson Lights, Billy offered to buy a refill for Lily. Lily flatly refused, but Billy sat down and explained the shocking turn of events that transpired during the Jabot stockholders' meeting. Billy insisted he had not betrayed his mother because his father had created Jabot, so the company belonged to the Abbotts. Billy explained that he didn't expect Lily to "get it." Cane arrived and added sarcastically, "We all got exactly what you did, brother." Billy tried to explain that he became involved with Jack because of Gloria and Jeffrey Bardwell, but Cane cut Billy off. Billy suggested he could further explain his actions to Lily another time, but Lily told him not to bother.
After Billy walked away, Cane told Lily that Billy did not care about their mother or her feelings. Lily added that Billy was not like Cane, because Billy would never have the close connection Jill and Cane had. Cane asked about Ana, and Lily explained that Ana might have to stay in foster care for a few weeks. Lily said Ana's predicament had greatly affected her family. Cane offered a comforting hug, and Lily kissed Cane's cheek.
Billy encountered Chloe at the coffeehouse bar. Chloe berated Billy for tanking his relationship with Lily. Billy pointed out that Chloe's husband was out on the patio with his ex-fiancée. Chloe was miffed because she would have to pry Cane and Lily apart. After Billy left, Chloe saw Cane hugging Lily. After Cane left, Chloe approached Lily and asked what it would take to stop Lily from hugging and kissing Cane. Chloe admitted that Cane didn't love her, but that their baby girl deserved a devoted father. Lily reminded Chloe that she had urged Cane to marry Chloe and support the baby. Chloe suggested that Lily could avoid running into Cane and added that the baby would discern that Cane had chosen Lily over her. Before Chloe left, she told Lily to go to hell.
Cane stopped by Jabot to clear out his desk, and Billy attempted to mend fences, but Cane balked and said, "I don't want to know you, let alone be related to you." Billy offered Cane a position with the Starblaze line. Billy recalled that he was an Abbott and didn't appreciate being shipped to Hong Kong even after he groveled for a position at his family's company. Cane recalled that Billy's serious gambling debts led to his assignment overseas. Billy claimed that their mom gave Cane a job he didn't deserve at the company about which he had known nothing. Billy said he had only taken back what was rightfully his. Before Cane departed, he told Billy that he had warned Lily about his brother. Billy assured Cane that he could clearly explain to Lily why he had taken the reins at Jabot. Cane told Billy he had already proven to Lily that he was a jerk. After Cane left, Billy discovered a screensaver image of Chloe's ultrasound photo. Billy recalled that Chloe had insisted he wasn't the father of her baby, but he seemed surprised by the advanced gestational age of Chloe's fetus.
At home, Chloe prepared to paint the baby's nursery. Chloe opened the front door for ventilation, and turned on a portable stereo to liven her workspace. After donning a protective mask, Chloe climbed atop a ladder and began applying a coat of perky pink paint. Lily arrived and knocked on the open door, but Chloe couldn't hear Lily call out her name above the music. Lily walked into the nursery and turned off the stereo. Lily explained that she had considered Chloe's complaint and promised to avoid Cane. Chloe didn't express appreciation even though Lily explained that she and Cane had slowly built a relationship as friends before they ever became romantically involved. Tempers flared after Lily reminded Chloe that she and Cane would always be friends. Chloe accused Lily of treating her, as the mother of Cane's child, like crap because she wanted Cane for herself. Chloe challenged Lily to find her own man.
Lily became outraged and reminded Chloe that she had seduced Lily's fiancé when he was drunk. Chloe and Lily's battle of words over which of them Cane truly loved escalated. Lily proclaimed that as much as Cane loved Chloe's baby, he would never love her. From atop the ladder, Chloe ordered Lily out of her house. Cane returned home and overheard Lily and Chloe arguing. Cane heard Lily claim that the house would always belong to her and Cane. Chloe accused Lily of hating her baby because she provided proof that Cane had not been completely devoted to Lily. Chloe threatened to throw Lily out physically, but Chloe slipped as she descended the ladder and fell to the floor. Lily gasped in horror and cupped her hands over her mouth. Cane raced to Chloe's aid. Chloe clutched her swollen abdomen and cried out in pain.
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Murphy welcomed "Marge" and her friend Pearl into his home. Marge told Murphy that her bones were aching. She hoped Murphy didn't mind that she brought her friend home. Marge noticed something in Pearl's purse and saw her ring. When Pearl returned, Marge asked why she would steal from her. Pearl tried to say that Marge must have forgotten. Marge got very angry and said she was upset that her friend would try to take advantage of her. Pearl changed her tone and said that she was attempting to take the ring to the pawn shop because she knew it was worth a fortune. Murphy was thrilled to hear that Marge might have come upon some money. Pearl talked about how much fun they could have gambling. Marge said that she wasn't into gambling. Murphy told Marge that the ring was perfect where it was-on Marge's finger. When Pearl went home, Marge told Murphy that she felt like a stranger in her own life. Murphy said that sometimes people had some rough patches in their lives. Marge thanked Murphy for his support. Murphy said that was where she belonged, at home with him.
Gloria was upset when she found out that Jeffrey was working with Jack to try to snag the CEO position. Jeffrey said that they both wanted the same things. Gloria showed Jeffrey a bottle of wine that she snuck from the cellar. She wanted to celebrate that Katherine had left her the stocks. Gloria happily took a sip and started dancing around. She accidentally ran into an expensive vase and turned red. Jeffrey laughed at her. Gloria said that she would be president and he would be vice president. She told him that she had a little confession: she'd bought some extra Jabot stock on her own. Jeffrey said he'd done the same thing.
Michael was happy to finally return home from work to see his wife. He told Lauren that he hoped Gloria would step up and testify. He said that Gloria's testimony would be all they'd need to drop the case. Michael then received a call that Michael Sullivan would not be testifying.
Michael visited River to tell him that he had no one to testify in his defense. River said that he knew Gloria would testify. Michael insisted that Gloria would not testify. River said that he trusted Michael. As Michael fretted over what to do, River told Michael to relax. Michael said he worked best that way. Michael said that he would just have to wing it. When the trial began, Michael requested a continuance because his witness was not available. The judge denied the continuance. River asked Michael what they were going to do. Michael suggested that River pray.
Lauren went to visit Gloria at the pool house. Lauren asked to speak to Gloria alone about Michael and River. She said that Gloria was River's only hope. Gloria thought about Jeffrey's threat to expose her secret about the face cream. Gloria said that she wasn't going to have her name dragged through the mud just to defend River. Lauren couldn't believe Gloria wouldn't do it so Michael could have his father back. Gloria said that Michael Sullivan was going to testify, so she didn't have to. Lauren told Gloria that the deal had fallen through; if Gloria wanted to see her family again, she'd better get over to the courthouse immediately. Lauren screamed that Gloria would never see her grandson again, because Michael would never forgive her. Lauren stormed out and slammed the door. As Gloria began to go, Jeffrey walked in. He told Gloria that she'd be sorry if she went.
Cane and Lily rushed Chloe to the emergency room. As she was being pulled away on a stretcher, Billy showed up and asked what was going on with Chloe. Lily had a guilty look on her face.
When the doctor's started testing Chloe, she demanded to know what was going on. Cane suggested that they call Esther. Chloe didn't want her mother to worry. The doctors told Chloe that they were going to wheel her in for an MRI. When Chloe saw Billy, she wondered what he was doing there. Billy said that Lily had called him. Billy told Lily that she was taking the situation hard. Lily said that since she was arguing with Chloe when she fell, Lily was responsible if anything happened to Cane's baby. Billy said in no way was it her fault. He asked Lily why she called him. Lily said that she wasn't thinking. Billy was offended, but Lily asked him to stay. Lily couldn't believe that she had gone to see Chloe to apologize in the first place. Lily said that every time she felt that she was over Cane, Chloe would bring her back into it. Lily told Billy that Chloe had always wanted Cane. She said that Chloe had gotten pregnant as soon as she could.
Chloe told Cane that she should have never climbed up the ladder. Cane said that she couldn't have known. When the doctor returned from the MRI scan, he told Cane and Chloe that everything was okay with the baby. The doctor said that Chloe had a fractured pelvis, and suggested that Chloe stay off her feet the rest of the pregnancy. Chloe told Cane that he'd be sick of waiting on her hand and foot. Cane said he was just happy that she and the baby were okay.
Billy asked the nurse if everything was okay with Chloe and the baby. Lily was relieved to hear that the baby was okay. When Cane talked to Lily about the baby, he said he realized how important his wife and his baby were. He told Lily that he couldn't continue accidentally meeting Lily or lead her on; it was over.
Billy went to visit Chloe in the hospital. When he overheard Chloe say that she was 23 weeks along, Billy asked again if he was the father of her baby. Chloe said that she told him before-he was not the father. When Billy left, Chloe talked to her baby. She said that she wished she loved Cane the way she loved the baby's real father. Billy went to the nurse and said that he was taking bets on when the baby was born. The nurse said in her opinion, the wife was two or three weeks further along than she thought. Billy wondered if the baby could have been conceived as far back as June. The nurse said that she'd bet her job on it. Billy said the father would be surprised.
Lily went to Chloe and told her that she was sorry. Lily said that Cane had gone to her and told her that he needed to focus on his wife and baby. Lily said she'd decided to stay away. Chloe said she'd believe that when she saw it. Lily left and looked back on Chloe and Cane together.
Cane told Chloe that she and the baby would be his first priority from that point on, and he wanted the baby and Chloe to be his family.
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Murphy was glad to see that Katherine was keeping her emerald ring, and that she was planning on going to her Alcoholics Anonymous meeting that night. Katherine said that no matter how many times she said, "My name is Marge, and I'm an alcoholic," she was still having trouble believing it.
Katherine overheard Murphy on the phone, discussing plans for a pancake fundraiser. Murphy told her that it was a program he participated in to raise money for the kids' local cable channel. When Katherine told Murphy that she would like to help prepare the breakfast, Murphy protested, reminding her that she was on her feet all the time. Katherine insisted, saying that, "life on earth is short, and we should make every day count."
While having coffee, Katherine admitted to feeling slightly guilty about Murphy taking care of her. Murphy said that he was just returning a favor -- Marge and Pearl had helped him through the difficult time after his wife passed away. Katherine said that friends should be at the top of the list of things not to be taken for granted.
Jack called Sharon at the Abbott mansion and asked her if he could stop by to pick up some of his things. He became hopeful when Sharon said that she wanted to talk with him when he came over, but their conversation ended when Sharon got a call from Nick. Nick asked her if she would like to go to New York and arrange a tie-in promotion between Beauty of Nature and Restless Style. When Sharon thanked him for the opportunity, Nick said, "Anything for you, Sharon," just as Phyllis walked by.
Phyllis showed Nick the advance copy of the latest issue of Restless Style. He looked at the cover, and, thinking that the shoot had been held in Genoa City, said that the picture of the model in front of the Pyramide du Louvre was one of the best photo editing jobs he had ever seen. He was stunned when he learned that the shoot had actually been at the Louvre, with Phyllis in attendance.
Phyllis was nonchalant when Nick asked why she didn't tell him that she had gone to Paris for the shoot. She said it had been a "whirlwind trip," and that it was too bad that they hadn't run into each other there. Phyllis refused to make eye contact with Nick, concentrating instead on her laptop.
Wanting to be alone with Phyllis, Nick gave one of the editors some cash and told the entire staff to go out for dinner, and take the rest of the day off. Nick continued to press Phyllis as to why she hadn't mentioned anything about her trip to Paris. Phyllis lied and said that Nick had too much on his plate at the time -- Katherine had just died, and Victor had just been arrested. Nick said that he knew that those were bogus reasons -- and he told Phyllis that, in the past, they had never kept secrets from one another. Phyllis began sobbing and blurted out, "I saw you kissing Sharon on the bridge."
Phyllis told Nick how devastated she felt after seeing him kiss Sharon, and was unsure whether or not Nick still loved her. Nick said that he would always love her.
Phyllis, still clearly upset with Nick, told him that she didn't want to hear any excuses or explanations for the kiss. Nick said he had been in Paris looking for Victor, and Sharon had been there to meet up with Noah. He told Phyllis that when he and Sharon ran into each other, they talked about the past, and Cassie's death, and got caught up in the moment. Phyllis realized that it was Sharon who stopped it from going further than a mere kiss -- and that Nick would probably have slept with Sharon if Sharon had allowed it. Nick did not deny that. Nick said that the kiss didn't mean anything -- and that he and Phyllis were fine. Phyllis said they were not fine -- that it looked to her like Nick still loved Sharon. Nick told Phyllis that nothing like that would ever happen again.
Amber and Daniel looked at the former Newman Art Foundation offices on the first floor of the Restless Style building. Daniel said that he had rented the space so that they could realize their dreams -- Amber's of becoming a great fashion designer, and his of becoming a famous artist. He said that Katherine would have wanted them to live out their dreams.
Amber and Daniel went upstairs to the Restless Style office, and told Nick and Phyllis that they were quitting their jobs at the magazine, in order to pursue their artistic goals. Phyllis pulled Daniel aside and told him that it wasn't a good idea for him to become financially dependent on Amber. Daniel told Phyllis that his future was with Amber, ironically adding, "Just as your future is with Nick."
At the Abbott mansion, Sharon and Jack reminisced about a romantic evening they had spent listening to old phonograph records. Jack told Sharon that they should try to talk things out, but Sharon told him that she wanted the two of them to tell Noah that they were separating.
After Sharon and Jack told Noah about the separation, Noah glumly said, "This is not as bad as the last time." Jack told Noah what an honor it had been watching him grow up. The uncomfortable Noah ran up to his room, while Sharon angrily yelled, "I hate this. It didn't have to be this way, Jack."
At Crimson Lights, Kevin was still having problems with the plumbing. When he mentioned using Katherine's cash to take care of the flood in the basement, Jana told him that it wouldn't be right. Kevin was upset that Jana didn't want him spending Katherine's money -- he said that the Chancellors already had "trillions of dollars," and that, since Jill often had coffee at Crimson Lights, Katherine would have wanted him to spend the money on the plumbing repairs.
Daniel and Amber stopped by Crimson Lights. Amber stared at Kevin while she talked about what an amazing person Mrs. Chancellor had been. Realizing that Amber still suspected that he had something to do with Katherine's death, Kevin asked her if she wanted arsenic in her cappuccino. When Kevin walked away for a moment, Daniel chided Amber for insinuating that Kevin was involved in Katherine's death. Amber said, "You act like he's incapable of murder. I still think Kevin's capable of murder -- and maybe this time he succeeded." When Amber turned around, Kevin, who had heard her remark, was standing next to her.
At the Abbott pool house, Jeff warned Gloria not to testify on Lowell's behalf. He told her that Lowell had blown up a bank and killed a janitor, and that he deserved to be incarcerated. Gloria, becoming hysterical, told Jeff that she wasn't going to let Michael down. Jeff said that he loved Gloria -- but, that if she took the stand, she would be the one going to jail -- for tampering with the Jabot face cream.
In the courtroom, Michael claimed that Lowell, an innocent man, had been made a scapegoat 40 years earlier. Michael said there wasn't any forensic evidence linking Lowell to the bombing, and he asked the judge to either dismiss the charges against Lowell -- or, at the least, release him until the trial. The prosecutor reminded the judge that the reason they were in the courtroom was because Michael claimed to have a new witness. At that moment, Gloria entered the courtroom, and Michael said that his witness had arrived.
During a recess, by Eden and Lauren joined Gloria and Michael in a hallway outside the courtroom. Eden hugged Michael when he said that he had a strong sense that Lowell might be coming home. The group headed back into the courtroom, followed by Jeff.
On the witness stand, Gloria said that the Lowell she had known 40 years before was a dreamer -- a man who wanted peace. As Jeff stared at her, Gloria continued that Lowell didn't even want to set off a confetti bomb at the time, let alone a real one. When the prosecutor asked Gloria why she was recanting the testimony she had given at the time of the bombing, Gloria said that she had been intimidated into giving false testimony. The district attorney, she said, had threatened to have baby Michael taken away from her if she didn't fabricate the story about Lowell setting off the bomb. She admitted that she had turned her back on Lowell, and let Michael grow up without a father. At the end of Gloria's testimony, Jeff walked out of the courtroom.
After another recess, the judge ruled. She said that, although 40 years didn't erase an act of domestic terrorism, serious issues had been raised about the evidence-gathering techniques used in the case. The judge released Lowell into Michael's custody pending further review of the case. The Baldwins and Gloria were thrilled with the ruling. Lowell and Eden hugged.
Back at the pool house, Jeff said to himself, "I warned you, Gloria -- now we're both about to get burned." Jeff then began smearing the tainted Jabot cream all over his face!
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River was delighted to finally be able to come home. River took off his shoes and said that he finally felt free again. Lauren told Eden that she had some mail. Eden opened it to find a notice that she owed thousands of dollars in cash to the IRS. When Lauren asked about the letter, Eden pretended it was nothing.
Jana told Kevin that River was a good and moral man. Kevin mentioned that River had left Gloria and Michael to fend for themselves. Jana told Kevin that she wasn't comfortable with him keeping Katherine's money. When Kevin stepped away, Jana opened the safe and put the money in a bag.
Gloria talked to Kevin about her fear that Jeffrey would have her arrested. Kevin said that Jeffrey was just trying to scare her. River raised a glass to everyone; his first toast was to Gloria. He told Gloria that he knew she would do the right thing. He said only a few months before, they were all strangers, and suddenly, they were a family. Lauren said that Michael had written her a beautiful letter when they first met. For their anniversary Lauren had written a letter for Michael. Michael read it to everyone. Michael had an anniversary gift for Lauren, too. He got her a special trip to Monte Carlo.
Jana went to River for advice. She asked if someone was dishonest, what would happen to their soul. River said that dishonesty meant a lack of integrity. The only thing that could change it would be to get integrity. Jana went to Kevin and told him that he needed to give the money away to someone who needed it, like River. Kevin said that if he wanted to give the money away, which he didn't, River would be the last person he'd give it to. Jana went up to River and said that she didn't think it was a coincidence that he'd married her and Kevin. She said that was why she wanted to give him a gift. She handed over the bag of money to him. She said that he and the ashram deserved it much more than she and Kevin did.
Gloria paced back and forth worrying that the cops would arrive to arrest her at any moment. Michael and Lauren were surprised to hear that Jeffrey still had the tainted face cream. Lauren said she was proud of Gloria for calling Jeffrey's bluff. Michael told Gloria that it took a lot of courage to do what she did. He said that River would not be free if it were not for her. Gloria said she didn't do it for River; she did it for Michael. Michael kissed her. Lauren grabbed a camera and took a picture of the family.
A doctor talked to Jeffrey about his condition. The doctor said that the nurse told him that he used his wife's face cream and burned his face.
Phyllis saw Adam alone at the bar. She told him that his attitude would catch up with him. Adam said that he would turn the diary over to the publisher again if he had the chance. Phyllis told Adam he was wasting his time punishing his family for not treating him well. Adam said that Victor killed a man and that he deserved what he got. Phyllis said the thing about Victor was that he always got the last word. Adam received a call from Frank Ellis. Frank told Adam that if he didn't get over there right away, he'd spill the beans about the Newman diary. Adam called Jack and told him that Frank was threatening to tell the DA everything about the diary. Phyllis was standing behind them listening to the conversation. Adam told Jack that if he went down, so would Jack. Jack told Adam to never speak to him in public again.
When Adam walked away, Phyllis went up to Jack. She asked Jack what he and Adam were arguing about. Phyllis wondered if it was about the forged diary. Jack said that he had nothing to do with that. Phyllis said he'd have plenty of time to write a script, considering he had no wife and no job. Jack said to leave his wife out of it. Jack told Phyllis that he was not giving up on his marriage. He said that Sharon was not interested in Nick. Phyllis asked why she saw them kissing on a bridge in Paris if that were the case. Jack wondered what Phyllis was doing in Paris. Phyllis explained that she had been in Paris for Restless Style. When Jack continued asking questions, Phyllis told him to talk to his wife about it. John appeared and told Jack that he had definitely gotten himself in a pickle. When Jack wondered what he should do, John suggested he start by telling the truth.
When Adam showed up at the jail, he wondered why he was meeting with Victor and not Frank. Victor told Adam that Frank had told him everything. Victor said he wanted to go after Jack Abbott. He hoped that Adam would help him do it. In return, he would offer him a compromise. Victor wanted Adam to confess and collaborate what Frank said. Victor said that in return, he would make sure the jury was lenient with him. Adam wondered why Victor would want to do something nice for him. Victor said that he was giving Adam an opportunity to do things right for his mother. Adam said that Victor helped him fail, and Victor had made him the family pariah. Victor said that if Adam turned on him, he'd take Adam down along with Jack. Adam got up and left.
Billy thought about Chloe telling him that it wasn't his baby. Jack showed up and asked Billy what was on his mind. Billy asked if he could confide in Jack. Billy told Jack that he had dated Chloe for a while. He said that the baby she was carrying was his. Jack told Billy that it was hard to live with such a big secret, but that's what he should do.
When Billy saw Lily at the coffeehouse, he told her that he could tell Lily was still in love with Cane. Lily told Billy about her pregnancy with Cane and how she'd lost the baby. She said that when Chloe got pregnant, she knew what it meant to Cane. Lily said that Chloe saw Cane as perfect husband material. Lily knew that Cane would make an incredible father. She said even with all their differences, neither of them had grown up with their parents, and they wanted more than anything to be committed parents to their child. Billy asked Lily if Chloe had never gotten pregnant, would she have forgiven him for cheating on her. Lily said that she would in a heartbeat. She said that the only reason Chloe and Cane were even together was for the baby. Billy said that even if their relationship was platonic, after years of marriage, things might possibly change. Lily thanked Billy for listening to her. She forgave him for his part in the takeover. Billy said that he hoped they could continue to be friends. Billy called Jack to tell him that he'd decided not to say anything about Chloe's baby.
When Cane and Chloe returned home, Cane told Chloe to lie down on the couch and relax. Cane put a blanket on Chloe and put his hand on her stomach. Chloe started thinking of baby names for their little girl. Cane had some seriously different ideas for names for the baby. There was a knock at the door, and Esther appeared with a suitcase. She said that since Chloe was bedridden, she was moving in. Cane told Esther that he should be the one to look after Chloe. Esther said that at least if she was there, she'd make dinner. Cane and Chloe whispered that they'd get Chinese food after she left.
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As they breakfasted at the Athletic Club, Jack evaded Ashley's questions about his alleged sex addiction, and the end of his marriage to Sharon. He preferred to discuss business, telling his sister that, in light of the country's economic problems, Jabot should heavily promote its low-cost Ashley line of fragrances. When Jack said that he was a consummate businessman, Ashley said that he was a consummate liar -- and accused him of somehow being involved in forging Victor's diary.
At Crimson Lights, Adam remembered Victor's threat -- Victor had said that if Adam didn't help him "take down" Jack, that Victor would take down Adam. Adam told Heather that he wanted to get married right away, and take an extended honeymoon out of the country. Heather was taken aback -- she reminded Adam that she was only a few days away from "nailing" Victor.
At the jail, Paul visited Victor. He told Victor that he saw Frank Ellis, the alleged forger, with Adam at the Genoa City Motor Arms Motel. Victor was happy to get the information, and asked Paul to dig further into Ellis' story about the forgery. Paul chided Victor for treating Nikki badly, but agreed to do what he could to prove that Ellis' confession about Jack and Adam's involvement in the forgery scheme was the truth.
Paul joined Heather at Crimson Lights and warned her that there was evidence that implicated Adam in the diary forgery. Heather was upset when she learned that Paul was working for Victor. Paul told his daughter that she should take a good, hard look at Jack and Adam's involvement in the forgery. Before Paul left, he told Heather that Adam wasn't worth the loss of her career. On his way out of the coffee shop, Paul ran into Jack, and told him that it was only a matter of time before Jack's involvement in the forgery was proven. Jack look concerned as Paul walked off.
Ashley visited Victor. Victor told her that he had a written confession from Frank Ellis, in which Ellis admitted to forging the diary under the direction of Jack Abbott and Adam Wilson. When Victor said that Jack's dictation of the diary took place at the Genoa City Motor Arms Motel, Ashley realized that the motel was where Jack had his alleged trysts with prostitutes. Victor laughed when he learned that Jack had confessed to being a sex addict -- he said the only thing Jack was addicted to was lying.
Later, Ashley ran into Adam at the Athletic Club, and asked him whether Jack had been involved in the diary that Adam had published. Adam lied and said that Jack had merely introduced him to the publisher. Ashley promised discretion if Adam told her the truth, but, before he walked off, Adam said, "Ask Jack -- he has all the answers."
Paul found Adam at the Athletic Club and told him that the walls were closing in -- Victor had hired him to investigate the diary hoax, and he was on his way to Mexico to gather more evidence. Paul told Adam that, although Heather might have a soft spot for Adam, he certainly did not. He implored Adam to implicate Jack as the mastermind behind the forgery, telling him that the authorities might go easier on him if he told the truth. He added that if Adam really cared about Heather, he would confess. Paul left to catch his flight to Mexico, and Adam didn't say another word.
A livid Ashley found Jack and informed him about Ellis' confession, adding that she knew the scheme had been cooked up at the same motel where Jack had been feeding his "mythical" sex addiction. She told Jack that she was tired of listening to his lies, and that she didn't want him involved in running Jabot. When Jack said that he would "stay in the back seat," Ashley replied, "You're not even in the car -- you're out."
Heather visited Victor. Victor told her that he had hired Paul to find out the truth about the diary. He accused her of being a plague on his family ever since she had arrived in Genoa City, conducting "shoddy investigations" in order to further her career. Victor handed Heather the envelope containing Ellis' confession, saying that it would be the last time her "professional grandstanding" would hurt him.
After Heather finished reading Ellis' confession, Victor said that he was innocent of Palin's murder, just as he had been innocent of Ji Min Kim's murder. Victor ominously said that her fiancé, Adam, would end up behind bars.
At the Baldwins', Michael received a phone call from the court advising him that all charges against Lowell had been dropped. An excited Lowell said that it was all thanks to Michael -- but Michael said that, if it weren't for Gloria, Lowell would still be in prison. Lowell left to find Eden and tell her the good news. Gloria received a phone call from Jeff -- he said that he had eaten some hot peppers in Thai food and was at Genoa City Memorial Hospital, having suffered an allergic reaction. She rushed out to visit Jeff.
Lauren showed Michael an odd piece of mail that Eden had received -- a tax assessment on the Malibu ashram property for over $23 thousand. Michael said that it didn't make any sense for the ashram to be in Eden's name. Michael called Lowell, who was at Crimson Lights looking for Eden. Lowell made light of the bill, and told Michael to forward it to the business manager at the ashram. Michael said that he was concerned that someone was using Eden's identity. Lowell feigned concern, and Michael said that he would call the Los Angeles County tax assessor to find out what was going on.
Lowell found Eden at Crimson Lights and shared the exciting news that the charges against him had been dropped -- that he was a completely free man. Eden was shocked when Lowell said he couldn't wait until they left Genoa City and went back to the ashram. Eden said that the Baldwins wanted her and Lowell to stay in Genoa City, but Lowell said that was only an act. Lowell thought it would be nice to smell the Pacific Ocean air once again.
Michael checked with the tax assessor and learned that the assessment was correct -- that, on paper, Eden owned the ashram. Lauren was perplexed -- she didn't understand where Lowell could have ever gotten enough money to buy expensive Malibu real estate.
Michael called Eden, who was still with Lowell. Lowell gestured to Eden not to reveal that she was with him. Michael asked Eden if Lowell had ever spoken with her about money, or if she knew of some large gift that Lowell might have received. Eden covered the phone's mouthpiece and told Lowell that Michael was asking questions about money. Eden demanded that Lowell tell her what was going on, but he told her to get off the phone. She told Michael that she had to go, and hung up.
Lowell told Eden that it was time for them to leave Genoa City. She didn't understand why he was avoiding Michael. Lowell told her to get her things and meet him at the warehouse later that night. When Eden said that she couldn't simply disappear overnight, Lowell told her that their leaving wasn't open for debate.
Back at the Baldwins', Michael told Lauren that something wasn't right. Michael came to the alarming conclusion that, after the bomb had gone off in the bank 40 years earlier, Lowell had stolen a large sum of money from the bank. Michael said, "We've been had!"
At Genoa City Memorial Hospital, Gloria rushed in to see Jeff. The right side of his face was severely burned. When Gloria said that Jeff really needed to watch what he ate, the doctor said that the burn wasn't an allergic reaction -- that it was a topical burn. As Gloria listened in terror, Jeff told the doctor that he had used some of Gloria's moisturizing cream on his face. Jeff gave the doctor the jar of face cream that Gloria had contaminated.
After the doctor left, Gloria said that Jeff was a "vindictive bastard." After once again saying that she had testified for Michael's sake, not Lowell's, she asked Jeff what it would take for him not to turn her in to the authorities.
When Jeff innocently asked Gloria what he could possibly turn her in for, she summarized why she had put a toxic chemical in a sample of the face cream. She just wanted to create a scandal to remove Jack and Ashley from Jabot, but some of the cream had been inadvertently sold, and the chemical in the cream had caused a woman's death.
Jeff suddenly yelled, "You got that, guys?" Several policemen came out from behind a divider in Jeff's room. As Gloria was being arrested and read her rights, she warned Jeff that it wasn't over.
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