Mike and Katie stopped by the Oakdale library to drop off a couple of boxes of "Oakdale Confidential" for the upcoming library benefit. The librarian runs them off after directing them to leave the books on a top shelf since it is time for the library to close. Margo called Katie with the news of Craig's release from prison. Katie ran off to see Craig at the Lakeview and Mike headed over to Crash, forgoing a reunion with his brother-in-law.

Craig and Lucy met at the Lakeview. Craig told her about his plans for the research fund in Jennifer's name. He handed Lucy the check and she gave it right back to him, while calling him out on his plan to upset Jennifer's family and walked out.

Up in Barbara's suite she, Paul and Dusty discussed Craig's research fund. Barbara and Paul were beside themselves, while Dusty decided to downplay the whole situation thinking Craig was just using this to get under their skin. Lucy arrived at the suite and Paul left to talk to Craig. Barbara hovered over Lucy and Johnny, as she refused to discuss the matter in front of Lucy. Dusty told Lucy he thought her father was trying to ruffle his feathers in case there was a custody battle in the future. Lucy promised to testify in Dusty's favor if there was one.

Craig saw Meg walk into the Lakeview and called her over. Meg questioned his plan with the fund, while Katie walked in and stopped by the bar watching the two talk. Paul arrived and sent Meg away while he told Craig he couldn't use Jennifer's name and threatened to do to Craig what Craig did to Roseanna. Meg went over to Katie and tried to get her to talk some sense into Craig, but Katie just left. Paul then went over to Meg at the bar and she told him he was falling for Craig's scheme and that it would be best for him to forget about it.

It was open mic night at Crash and Casey showed up to join Maddie and Gwen. Gwen saw Jack drinking at the bar and tried to console him, only to have Elwood rap a song in her honor. Gwen then sang and Casey recorded the performance to give to his brother Adam. Outside Crash Mike and Jack met and Jack told Mike about finding Carly and Simon in the hotel room. They both discussed Simon's shady character and dealings. Mike wondered out loud to Jack if he should tell Katie about Carly and Simon as Katie walked up. Jack left and they both agreed not to talk about Simon or Craig.

In Simon's hotel room Carly ranted over Simon's dealing with the loan shark and how her shot at becoming independent and respectable was now gone. Simon apologized and told her to leave, as he did not want her to be involved in his mistake and didn't want her to suffer any consequences of his actions. He didn't want her to have anything more to do with the project. He cared about her too much.

At Oakdale Memorial Luke told Jade she had to tell Will the truth about her not being pregnant. Jade said Will loves her and not Gwen, and that she would get Will to sleep with her again so she would get pregnant. Luke said Will did love Gwen and that he would tell Will if she didn't. He would make a copy of her chart and save it for proof if he needed to use it. He gave her 24 hours. He also said he would still be her friend even though he didn't agree with how she goes about things.

Will arrived at the hospital over concern for the baby and Jade quickly sent him off for her prescription in case Luke would spill the beans. Jade then asked Luke to go get her some food. Luke left and said he would make a copy of her chart on his way. Jade then calls Gwen at Crash. Jade told Gwen to meet her at the library so she could tell her something important and hung up. Gwen decided to go since she didn't want to feel intimidated or scared of Jade. Luke and Will met back up and they both wondered where Jade disappeared to. Will asked Luke what was going on and Luke said nothing. Gwen showed up at the darkened library and Jade appeared from the shadows.

Carly walks out on Simon and comes upon Mike and Katie as they celebrate the good news from the doctor that they can have children. Carly reveals her fight with Simon and insists she hopes he gets what's coming to him. Meanwhile, Simon makes a mysterious phone call and goes to meet the loan shark and his goons. When he tries to give back the money, the goons attack him. Carly later finds him, beaten up and unconscious. Will demands that Luke tell him what's up with Jade but Luke covers and grabs the records before Will can discover that Jade isn't pregnant. Meanwhile, Jade tries to provoke Gwen into a physical confrontation, determined to set Gwen up. When Will arrives, Jade's attempts to stage an accident suddenly backfire and a real accident occurs, injuring Jade badly. Will and Gwen rush Jade to the hospital and Gwen swears to Will she in no way meant to cause Jade any pain. However, the big shock comes when the doctor reveals to Will and Gwen that Jade isn't pregnant. Holden's attempts to track down Theresa prove worthwhile when she arrives in Oakdale. But, Theresa blows Lily away when she reveals Rose is not her mother and suspects that Jade is Lily's niece after all. Lily balks but Theresa reveals there was a mix up at the orphanage and a DNA test has already linked Theresa to her real birth mother. Luke then arrives, fresh from the hospital with Jade's medical file in hand. When Lily sees that Jade's blood type matches her own, she makes a phone call and learns Jade is on death's door. Maddie and Casey find themselves alone in Maddie's room and are unsure and awkward. Casey reassures Maddie that she can trust him and Maddie finally opens up to him about her rape and how she doesn't know if she should still consider herself a virgin. Holding her, Casey assures that she is and that when they finally make love, it will be for the first time.

After Lily speaks to Lucy about Jade's dire condition, Lily wants to rush to the hospital to be by her niece's side. Holden protests because of Lily's frail condition and because he is convinced Jade may still be lying. After some convincing, he agrees to let Lily go be with Jade. At the hospital, Lucy tells Lily about Jade's emergency surgery and Lily asks to speak to Jade's doctor. Lily learns from the doctor that Jade was injured at the library and then goes into see an unconscious Jade to tell her what she learned from Teresa. In a conversation outside Jade's room, Luke tells Holden that he was trying to convince Jade to do the right thing, but when Holden pushes him to tell him more Luke refuses to tell Holden the story of Jade faking her pregnancy. A suspicious Holden believes Jade may be setting Lily up again and asks Lucy to compare Jade and Lily's medical records to see if Jade could be Rose's child. Lucy later confirms to Lily and Holden that Jade is most likely Rose's daughter.

At the hospital, Will and Gwen learn that Jade was never pregnant and then we see Lucy and other doctors rush into help Jade who needs emergency surgery. A visibly angry Will is concerned for Jade, but wants to talk to her and find out why she lied about being pregnant. Gwen is convinced that Jade lied because she knew it was the one thing she could never give Will, a baby of their own. Gwen and Will leave the hospital and go to Java to talk. Once there, Gwen tells Will that she thinks that Jade faked her accident. Will sees Luke and is convinced he may have the answers to everything that has been going on with Jade. Will confronts Luke about Jade and learns that he knew about the fake pregnancy and he tells Gwen and Will that Jade planned to sleep with Will again to really conceive his child. He explains that he was trying to give Jade time to tell Will on her own and then Gwen figures out that Jade was trying to get her to hit her so she could fake a miscarriage and blame it on Gwen. Luke, Gwen, and Will all return to the E.R. to check on Jade. At the hospital, Jade wakes up and talks to her new Aunt Lily as Will waits outside her room to confront her with what he knows.

Katie and Mike go to the police station to convince Jack to console Carly over her failed business dealings with Simon. Katie and Mike tell Jack about their conversation with Carly at Crash and how angry she is with Simon and his choice to take the money from the loan shark. Just then Katie receives a phone call from Nancy about the accident at the library and Katie rushes out to meet her at the Lakeview. Mike continues to try to convince Jack to go be with Carly and get Simon out of her life and out of Oakdale. Mike leaves police station and goes to the Lakeview to surprise Katie. Jack also leaves to confront Simon.

At his apartment, Carly discovers an unconscious and badly beaten Simon. Carly tries to assess Simon's injuries and learn what happened to him. Simon explains that the reason he was beaten up was because he tried to give the money back to Spiro, the loan shark. Carly wants to call the police and have Spiro and his henchman arrested, but Simon convinces her not to for their safety. Simon explains that he still has Spiro's money, which means he is still in business with the loan shark and he needs to figure out what to do. When Carly offers to help Simon he tells her to get as far away from him as possible, but she says she can't and is staying. After again telling Carly to get away from him, Simon then goes to get more ice from downstairs and is spotted by Katie and Nancy. A befuddled Katie is convinced Simon is up to something because he ignored her. Back in his room, Carly waits for Simon and then tells him the only solution is to finish the building, sell it, and pay Spiro back. Simon agrees to Carly's plan and they seal their deal with a hug that is witnessed by Katie who turns and runs into Jack in the hall.

Meg was working on her mom's small tractor at the farm and couldn't fix it when Craig showed up. He started trying to fix it for her while Meg asked him what he was doing there in the first place. Craig told Meg he didn't understand all the fuss about the research foundation. Meg told him how it was disrespectful to the family. Craig saw the light and didn't want to offend Jennifer's memory so he would stop the creation of the fund. At the Lakeview Paul found Emily going over the press release for the Jennifer Donovan Memorial Fund. He sits down and told Emily it was not going to happen and he ripped the press release in half. Paul told Emily how his family and even Jennifer would not want it.

Paul arrived at the farm to find Craig there with Meg. Paul told Craig to leave and he did. Meg told Paul that he changed his mind about the fund. Paul said he still didn't trust Craig. Craig just wanted to have Meg on his side. Paul also admitted he was jealous. Craig went to the Lakeview to see Emily. He told her he was not going to set up the foundation and Emily figured out he never was going to.

Katie saw Simon and Carly hugging in his hotel room. Jack arrived and Katie ran right into him. Katie told Jack she's sorry but Carly told her that she and Simon were over. Jack looked into the room. Simon and Carly were still in each other's arms. Katie left. After Simon and Carly said their goodbyes and renewed their plans to work together Carly left, only to have Jack meet her in the hall and take her down to the police station for questioning. Then Katie appeared and knocked on Simon's door.

Simon let her in and she gave him the third degree about his injuries and the whole loan shark business. Then Katie questioned him about he and Carly hugging. Simon tried to ignore her and Katie increasingly got annoyed with Simon's lack of attention to her. Simon finally got Katie to leave after she tried to nurse him back to health. Simon confessed he cared for Carly. Katie realized Simon had fallen in love with Carly.

At the police station Jack drilled Carly about the loan shark and blessed her out for getting into trouble once again. Jack said he knew about the loan shark and Carly flat out lied to him saying the money came from an overseas investor. Jack told Carly to leave and as she left the police station one of Spiro's henchmen saw her. The bad guy called his boss and told him of Simon's blonde coming out of the police station.

Jade woke up in her hospital bed and saw Lily standing over her. Jade asked her why she was there. Lily told her that she was Rose's daughter and apologized for not finding out sooner. Jade confessed her fake pregnancy and set-up accident to Lily. Lily told her she needed to make amends for her actions, but blamed herself for not having believed her in the first place.

Dallas showed up at the hospital and Will told him how Jade set up the accident. Will wanted to have Jade arrested. Lily walked out and overheard the two talking to Dallas and then threw out the fact that Will killed Jade's mother and they should be even now. Lily went through Will's reasons and actions of how he killed Rose. Will went in to see Jade and they both apologized to each other and agreed they were even. They shook hands. Lily, Holden and Lily went in and welcomed Jade to the family and told her she was staying with them now. Gwen and Will made up and left the hospital together.

At the hospital, Lucinda has called an impromptu board meeting and invited Lucy to attend, too, along with Dusty and Barbara. Craig walks in, saying he had a checkup at the hospital and saw the meeting going on, and he wants to apologize to everyone there. He tells Barbara that he has hurt her too many times to be forgiven, which she agrees with, then he tells Lucy that he has not done well by her in the past, either. He tells the group that it was presumptuous of him to think of starting a foundation named after Jennifer, so he's going to cancel the idea, but he had already put into motion the plans for a masked ball to benefit the hospital, and the guest list has already been put together, with Sierra's help. He has invited many important people, including the Prince of Leonia, who is bringing the royal jewels for display, but Craig says he will cancel the benefit if that is what they all want him to do. Barbara, Lucy, and Lucinda all say he should cancel it, but Dusty says he thinks it should go on as planned, because the town could use a good party. Lucinda takes Dusty outside the room and asks him what he's thinking; he tells her he wants to keep his enemy close, and he ends up convincing her that the benefit should be held as planned. They go back into the meeting and announce their decision. Lucy goes outside and asks her father what he's really up to, while Barbara asks Dusty the same thing.

At the police station, Jack brings Spiro into an interrogation room and tells him he's keeping an eye on him and that if he breaks one minor law, he'll see about having his parole revoked. Spiro realizes Jack doesn't have anything concrete to charge him with, so he tells him to tell him what he knows so he can see if he can help him. Instead, Jack just tells Spiro he'll take him down if he goes back to business as usual. Spiro leaves, and Margo comes up to Jack and reminds him that Hal's rules don't provide for bringing in suspects without any charges to back it up; she accuses Jack of trying to ride to Carly's rescue once again, and Jack admits it. Margo tells him that even though Hal's in DC on business, it's still his shop, and Jack needs to play by Hal's rules. Jack says he'll be glad when Hal's back, so Margo can quit giving him his marching orders.

In Simon's suite, Carly puts makeup on Simon's bruised face so that he can meet with some people about the building. Carly tells him she'd never leave him when he's down like this, but he asks what will happen when everything is finished and the debt has been repaid. She tells him they'll just have to wait and see. There's a knock on the door, and it's Reggie, the new contractor Simon is trying to hire to fix his building. Reggie says it can't be finished until almost Christmas, so Simon takes out a bundle of cash and offers it to him; that makes Reggie think he could do it by Thanksgiving, and another bundle of cash results in the date being the first week of November. One more bundle of cash later and Reggie is assuring Simon that the building can be ready in a week. He leaves, and Carly and Simon share their excitement about this good news. Simon then gets a phone call and tells Carly that "plan B" has arrived downstairs: he has found a potential buyer for the building and has to go down to the lobby to meet him right now. Carly stays because she has a meeting with the carpet and drapes people, and Simon leaves. When Simon gets to the lobby, there is no buyer there; instead, Spiro and his 2 goons approach him and threaten him about having gone to the police.

Katie wakes up to find Simon next to her in bed, but he tells her he's completely over her, and then he turns to kiss Carly, who is lying next to him on his other side. Katie wakes up yelling, "No!" which wakes up Mike, who wants to know why she's had a bad dream. She tells him about finding Simon and Carly hugging after they had thought Carly was finished with Simon, and she tells Mike that Jack saw them, too. Mike says this is worse than he thought, because he had thought it was "just physical" between Simon and Carly; Katie wants to know if he means they've slept together. Mike says he'd gotten that impression from Jack. Katie starts getting dressed and sees the Family Planning pamphlet she'd brought home; when Mike admits he was reading it the night before, she throws herself at him in a passionate embrace. Later, Mike says she's worn him out but he has to go to a meeting; he leaves, and Katie tells Snickers, the rabbit, that he shouldn't worry about Mike and her having any babies, because they won't love Snickers any less. Then she frets about Simon and Carly some more and finally says she has to find out for herself whether they're sleeping together, so she can stop obsessing over it. She goes to Simon's suite at the Lakeview and manages to jimmy the door open, only to find Carly sitting on the bed, working. Meanwhile, Mike goes to the police station and apologizes to Jack for having misrepresented the situation with Carly and Simon to him, and he promises him that he and Katie will butt out of their business from now on.

Will and Gwen are back at home, together. Casey and Maddie come to their door, dressed in tropical island attire, and announce that Will has planned a honeymoon for him and Gwen to St. Lucia, where they will spend 5 days and nights alone together. They show Gwen that they've brought her some luggage and some island "togs," as well as a wedding cake. Maddie says she needs to know why they're not going to press charges against Jade for what she did, and although Gwen says they just want it to be over, Will says it's "because I killed Jade's mother." They explain to Casey and Maddie that it turns out that Jade is actually Rose's daughter after all, and although Casey and Maddie try to tell Will that what Jade did as an adult is different from what Will did as a child, he says he's not keeping score and just wants to be with Gwen, forever. Casey puts on a CD of Gwen singing and tells Will that he sent it to their brother, Adam, because he's involved with music production these days and will love it; Maddie is stunned to hear that Casey and Will share a brother, so Casey explains that he and Adam have the same mom (Margo), while Will and Adam have the same dad (Hal). Will says Adam used to get them all in trouble and gives an example of when they all took Hal's car out for a joy ride but ran out of gas and had to call Hal to come get them; when Hal saw the worried looks on their faces, he laughed and took them out for ice cream, making them promise they wouldn't tell their moms about it. Maddie says families are strange, and that momentarily depresses her as she thinks about her own family, but Casey and Gwen tell her the bad times are behind them all, and they have a lot to celebrate now. At that moment, as they all dance, Will's phone rings, and he goes into the next room to answer it; when he returns, he appears stricken, his face showing that he has just received some terrible news.