In Victor's office, Jack offers him a way to end their war of wills. Jack reminds Victor they are at an impasse and any type of change will be a long time in coming. A legal battle will take years and cost millions of dollars. Jack offers this compromise: Jack resigns as CEO, waives any claim to the severance package, and Victor gives Jabot back to John Abbott.
Nikki remembers Brad's kiss but Victoria interrupts her daydream. She guesses that Nikki has been out with Brad and they argue about Nikki's involvement with him. Victoria asks what would happen if someone saw her with Brad and told Victor. Nikki agrees that she won't see Brad again but Victoria isn't sure she means it. Victoria accuses Nikki of holding something back but Nikki refuses to tell her daughter about Brad's bold move.
Jill calls home to see if Billy is there and displays her usual attitude toward Esther. Brad comes into her office and Jill lets him have it. She tells Brad she could kill him for dragging her into that board meeting. Brad says he's sorry and tries to sway Jill to his side of the battle since Victor will never forget she was a part of the quorum. Brad continues to pressure Jill to "switch to the winning side," but Jill tells him no thanks. Brad wants her to think it over; his offer will stand until further notice.
Callie stops by to see Gina and repay some of the money she owes her. Neil comes in and Callie can't resist confronting him about being involved with Olivia. Neil tells Callie nothing ever happened between him and Olivia, but they share feelings for each other. On the other hand, Callie has been waiting like a vulture to snare Malcolm. They argue. Neil zeroes in on the fact that Callie is only interested in what Callie wants. She doesn't really care about what happens to Malcolm.
Malcolm brings Nate by to Olivia at her office after he's attended a friend's birthday party because Julia is busy. Nate goes to the cafeteria by himself to get a soda. Malcolm asks if Olivia has anything to say about her conversation with Callie. Thinking that Malcolm is just stirring ingredients for an argument, Olivia yells at Malcolm for not opening up to her when he thought she had a thing for Neil. Perceiving this as a dig, Malcolm becomes aGityated. Olivia says that she wasn't putting on a performance when she came back from her conference. The argument ends when Nate comes back.
Callie stops by Malcolm's studio with his favorite dessert -- pecan pie. However, since his argument with Olivia, Malcolm's lost his appetite. They rehash their respective run-ins with Neil and Olivia. After begging Malcolm to share what has him in such emotional turmoil, Malcolm finally tells Callie about finding Olivia in Neil's bed. Callie is awestruck.
At an outdoor table at Crimson Lights, Billy calls Dylan in New York to let him know he's ended up in "Cheeseville" for the summer. Inside Kay and Mac are taking a break from job-hunting. Chad, the manager of CL, overhears Mac's employment dilemma and offers her a job. One of the waitresses has just quit, so Mac gets to work her first shift on the spot. Eric and J.T., two guys from the pool party Jill organized at the Chancellor/Abbott estate before Billy left for NYC the first time, come in and sit down. When Mac comes to wait on them, they invite her to go to a keg party that night at Granite Park. She turns them down. Later, the two invite Billy, who thinks it beats sitting around the museum his mother lives in. Billy spots Mac and she asks if he's going to the party. Billy and Mac argue, then agree not to talk to each other if they don't have to. Raul thinks Billy looks familiar, then Billy remembers Raul as a shy friend from junior high school.
After Jack tells Victor that he will give up the CEO position and his golden umbrella for Jabot, Victor isn't interested. But he does want to know where Brad fits into this plan. Jack says that if he can't handle Brad and Michael, he isn't the man he thinks he is. Victor also surmises that Jack is doing this because he still feels guilty for taking his father's company public and losing it for him. Jack says that his reasons are his alone; he emphasizes that the deal is on the table for twenty-four hours.
Callie keeps on at Malcolm until he finally tells her that he found Olivia in Neil's bed. He explains how it came about but Callie isn't sure that he saw the real thing. She can't believe that the two of them were intimate, not while they have been shouting their innocence. Malcolm doesn't want to talk about it any more. Callie says that she will take him home and make him feel better, but as they are about to leave, Mal notices that he has something of Nate's in his pocket. He tells Callie to go ahead home and he will take it to Olivia.
Neil visits Ryan in his office and congratulates him on being back with the company and for the promotion. Ryan hints that he doesn't know what is expected of him and Neil tells him that if Victor wants anything---even a cup of coffee---to run like heck and do it. Brad walks in and asks what Ryan is doing back here. He cautions Neil that associating with the wrong people could make things more difficult for him. He then tells Ryan that he is only there as Victor's pawn. He says that it is Victor's way of rubbing their nose in it but in the long run, it won't work. After sneering at Ryan and his new position, Brad leaves.
Kay returns home and Birdie asks where Mac is. Kay explains that Mac was just hired as a waitress at the coffeehouse. She also confides in Birdie that she is afraid that Mac won't be staying for long. Birdie tells her that she is pretty fragile, unlike her, Birdie, who can handle Jill and Billy. She says that Mac is too sensitive. She suggests that they have to find some way to lessen the tension and hostility in the house or Mac will surely leave. After all, it was the tension and hostility that drove her away from her former home.
At the coffeehouse, Billy is making friends and getting reacquainted with some old ones. He is invited to the party that is happening that night, telling Billy that there will be plenty of beer and things. Billy then joins the "computer geek" that has been friendly to Mac. It seems that they knew each other in middle school before Billy left home. Billy invites him to go to the party but Billy says that he isn't interested. He says that the crowd isn't interested in him and he isn't interested in them. Billy tries to persuade him anyway, but he declines. Mac approaches the table and asks if they want anything else. Billy is surprised to learn that Mac is working as a waitress. He snobbishly sneers at her for working at a minimum wage job while living with Katherine Chancellor at her estate. She proudly informs him that not everyone is interested in a free ride. After the other boy leaves, Billy invites Mac to the keg party, but Mac turns him down.
Ashley visits Olivia's office and tells her that things between her and Jack and Victor are very tense. She doesn't want to go against her family or Victor. Malcolm comes in with the ball that belongs to Nate. Coldly and succinctly he gives the ball and message to Olivia and walks out. Ashley is stunned at the coolness between them. Olivia confesses that Mal thinks that there is something between her and his brother. Of course, Ashley doesn't believe that until Olivia admits that when Neil was going through a hard time, the two of them got really close. Now she has to decide just how close.
Brad walks into Jacks office and asks him what he has been up to. Jack tells him that he has been up to nothing. Brad says that he called earlier and learned that he was in a secret meeting with Victor. He wants to know what is going on.
Jill enters the mansion asking if Katherine has heard anything from Billy. She is angry because he was supposed to be home by dinnertime and he hasn't even called. Kay tells Jill that she wants to talk to her about burying the hatchet. Jill wonders why they would want to. Kay explains that there are two young people in the house for the summer and if she and Jill could only get alone they could make it pleasant for both of them. Jill asks why she should want to make anything pleasant for Mac. Billy, yes, he is family. Kay says that Jill is wrong; Mac is also family. Jill is dumbfounded when Kay tells her that Mac is her granddaughter.
Vicki comes downstairs and greets her father. Victor tells her about Jack's offer to resign as CEO if Victor returns Jabot. Victor has "conditions" before he will do this. Vicki goes over the possibilities, accepting Jack's offer would save them time and millions. Victor is concerned about Brad. Jack went behind Brad's back. Vicki thinks that is good as Brad would be weaker alone, they could overpower him in no time. She asks about the fate of Brash and Sassy? She could never work for Jack. Victor tells her not to worry, it's not part of the deal. He won't give it away. He has a plan... plans for Brad, too! "Something rotten!"
Brad is giving Jack the third degree over his meeting behind closed doors with Victor. Jack makes up the excuse that he was telling Victor that his making Ryan "Assistant to the Founder" will have no effect on the situation. "Does it sound like I was conspiring with the enemy?" Jack asks. Brad apologizes for doubting and they shake hands. Ashley walks in on the scene and catches them "making nice" as Brad puts it. He claims that he and Jack understand each other now and if they hang together not even Victor can stop them! After Brad leaves, Ashley questions Jack further. She thinks something is up. "Yea, I'm up to something, you'll know everything in twenty-four hours!" Jack tells her. She guesses he is referring to Jabot, but Jack won't give her anymore details. He tells her to trust him.
Kay tells Jill that Mac is family, her grandchild! Jill doesn't believe any of it. She wants to know where Mac came from? " The homeless shelter." "Oh, you drop into the humane society and get a puppy and you drop into the homeless shelter and get a granddaughter!" Jill replies mockingly. Kay tells her that the shelter was her home the entire time that she was away. Jill calls Kay's story "garbage" and advises her that she needs a shrink! Kay tries to make her believe it is the truth. She wants the two of them to call a truce, for the sake of Billy and Mac. The phone rings, it's Billy. He tells his mother that he is "out" and will "be home when he gets home!" and hangs up on her. Mac gets home from her new job and watches at the doorway as Jill heads for another drink. Kay continues to berate Jill on her drinking as Jill sees Mac standing in the doorway. Jill stops and looks closely at Mac on her way out of the room, "Sure she is!", she laughingly states.
Trish tries to convince Meg that it is best now that their father knows everything. They agree that it is best if he doesn't find out where Tony lives. At this same moment, Keith is knocking at Grace's apartment door. Tony answers, Keith barges in, "You have a hell of a lot of explaining to do!" Keith informs Tony that he got his address from the court records. He demands to know why Tony didn't tell him about the arrest when they met before? "You stole a car and got my daughter arrested!" Tony tells him that they are both innocent, he's knows he isn't the right guy for Megan, and that he told her to stay away. Keith can't believe Tony let this happen! Just before he leaves, he points a finger at Tony and orders him to stay away from his daughter!
Ashley arrives home from work to find Cole out by the pool. He tells her his novel is finished and he has dedicated it to his wife. She reads the dedication and declares that she loves it and loves him! They kiss. When asked about work, Ashley tells him there is nothing to tell. Cole wants to go skinny dipping and starts to undress Ashley. After their relaxing "swim", Ashley admits to Cole that she is worried about Jack and she hopes he knows what he is doing.
Megan and Trish are waiting for their father when he comes through the door. He sees the two of them and walks to the other side of the room and begins rubbing his head with his hand. Megan tries to explain that she had hoped to handle this problem herself so he wouldn't have to worry. He tells Trish that as the oldest, she should have told him what was going on, and yet she didn't even tell him about her pregnancy right away either! He thought that his two girls could take care of themselves while he was gone, but instead he has returned to "secrecy and a total lack of trust!" Meg reminds him that they aren't little girls anymore. He tells her that the two of them will ALWAYS be his little girls! He informs them that he tracked Tony down and has told him NEVER to come around again! When he leaves the room, Meg declares that she must call Tony to talk to him, but before she can dial, the phone rings...Tony. He is calling to check up on her. He asks if her dad has told her of his visit? Yes. Tony tells Megan that he is sorry, so sorry, and hangs up. Afterward, they both continue to think about the other.
Mac and Kay discuss Jill's drinking. They change the subject and Mac tells her that she made $22 today in tips at her new job! She wants to "pull her weight." Kay praises her for the remarkable girl that she is and tells Mac that she told Jill that Mac was her granddaughter. The two of them remember the day that Kay let Mac know that she was her "Granny" and what incredible news it was for Mac. She's glad that Jill knows the truth about them. Kay goes up to bed while Mac decides to stay up awhile longer. When Billy comes stumbling in after too many beers, Mac gets on his case about drinking. "Why are you always judging me?" Billy demands. Mac calls him a "poor little rich kid." He tells her that he just wanted to have some fun with kids his own age. There was a designated driver, so no driving danger. Mac tells him there may be hope for him after all. After he goes upstairs, Jill comes in from the pool where she dosed off and heads over to pour another drink. Mac tells her that Billy is home, to Jill's relief. She thinks she will check on him, but Mac advises her that at 16, he doesn't need her to "tuck him in." As Jill leaves the room, she tells Mac that this "granddaughter" story she dreamed up is "clever, very clever!"
Nikki and Victor are cuddling on the couch. When she asks what he and Vicki were talking about earlier, he replies that it was "business." He does tell her that there is "movement" in reversing the take over and that he will be "running my own company again soon and will deal with Brad Carlton then!" This has Nikki thinking.
Jack is alone in his office. He picks up a picture of his father, looks at it..."Tomorrow, Dad, tomorrow!" he says.
Billy comes downstairs nursing a hangover but tells his mother that he is coming down with something. She checks him for a fever and blames Mac for not letting her go in and check him last night. He is surprised that Mac "saved" him the night before and tells Jill that he thinks that both Mac and Birdie are cool. Jill sets down some new ground rules for him and his behavior. He doesn't like the new rules and informs her that he is not a child any longer. She in turn tells him that he is still her son and has to obey her house rules. She tells him that she hasn't had much experience being a mom and the two of them will just have to work together. She is shaken when he says that he isn't used to having a mother around but she lets it go. After she has left the room and Mac has entered, he thanks her for keeping his mother out of his room the night before. She says that his mother is mean and he says that he will try to talk to her about that. She is pleased, but surprised, that he will do this. However, when she asks him to talk to his mother about being nicer to Mrs. Chancellor, Billy tells her that Mrs. C. gives as good as she gets.
Tony visits his attorney, the one who is taking Christine's place while she is away and asks him what he can do to get Megan off the hook. When he tells his attorney what he has already told the authorities, the lawyer says that he doesn't have the kind of information that the district attorney wants to hear. Later, Tony goes to the DA and offers to plead guilty if he will drop all the charges against Megan. The DA says he will have to hear what Tony has to say before agreeing to his terms. When Tony begins to confess, he turns on the tape recorder. Tony begins to spin a yarn about working for his boss but when the DA begins to ask for specific information, Tony is unable to provide it. Tony offers to wear a wire and go to his old boss, but the DA says that his boss will never trust him now. He calls off the deal and sends Tony on his way.
Sharon rescues Nick from the two children and says that he needs a little rest. They enjoy a touching family closeness and Nick promises that it will be like this all the time. Cassie asks if he will return to work and he says that he may have to return to work but he will not be working as hard and as long as he once did.
Keith takes Megan to John Silva and demands that he see that the charges be dropped against her, but John tells him that it doesn't work that way. Keith says that his daughter never stole a car; it was Tony who did that. Megan says that Tony didn't know that the car was stolen but Keith isn't interested in hearing that. When John continues to say that he cannot get the charges against Megan dropped, Keith says that it looks like they have the wrong attorney.
Ashley goes to Jack and demands to know what is going on. If he won't tell her then she is finished with defending him. Jack decides to tell her what he said to Victor. When he tells her that he has offered to resign from NE and give up the golden umbrella for Jabot, Ashley is beside herself with joy. She wonders if Victor will accept and reminds Jack that Victor hates to be given an ultimatum. Jack says that right now, that is the best deal that Victor could get. He reluctantly admits that Brad doesn't know about the offer. Ashley asks what she can do to help and he says that maybe there is something she can do.
Brad arrives in Victor's office and Victor tells him, without looking at him, that Jack has been there and presented him with a secret offer. Brad doesn't believe him until Victor tells him what Jack's deal is for. Victor then offers him his old job back as his right hand man if he will resign as CEO and refuse the severance package. Brad says no thank you to Victor's deal and leaves.
Nick arrives at the coffeehouse and meets Ryan who is fully energized because he has a job again. He says that Nick is probably really happy that he can once again get back to work. Nick surprises him by saying that he isn't as eager as Ryan thinks. He says that all the problems he has been through recently have taught him just how important his family is. Ryan can't understand Nick's attitude. Work is everything to him.
Brad leaves Victor's office and makes a beeline for Jack's office. Entering the office he wants to know what has been going on between him and Victor.
Brad confronts Jack about the offer he made to Victor. Is it really true? Jack admits it. When Brad begins to protest, Jack tells him to think about how he will be the remaining CEO. Brad is livid! He cannot believe that Jack would double cross him this way. Jack stresses that getting Jabot back is the most important thing to him. They argue. Brad says that if Victor turns down the deal with Jack, then he will not be able to trust Jack anymore. Jack tells him to be honest, did he ever really trust him to begin with? Brad remarks that John Abbott is such a classy businessman. How in the world did he ever raise a son like Jack?
Victor is reading a report in his office when Neil arrives with reports regarding Jabot's profits for the past two years. He questions Victor about the reports and Victor says he is interested in finding out Jabot's value.
After leaving Jacks office Brad returns to speak to Victor. He admits that Jack told him about the deal. He remarks to Victor that he can't believe he is stringing Jack along making him think he might accept the deal. Victor says he might accept the deal! The question is what is Brad going to do? Brad says he is sticking around, he won't be so easy to get rid of. He won't take Victor up on his offer because he swore he would never work for someone else again. It is a matter of pride. Victor tells him in the end he will lose. It' s better to bargain now than to pay later.
Nick is wandering around his office trying to get interested in work. Victoria stops by and tells him the enemies are turning on each other. Nick is glad to hear this news. However, he doesn't want to start counting on a future that might not happen. Victoria is stunned that Nick isn't more into this whole thing. Sharon shows up with lunch. Victoria acts like they were busy and Sharon is going to leave but Nick says she can stay and he will talk to Victoria later. Victoria reluctantly leaves. Sharon is sorry to intrude, but she misses him. He misses her too and he is glad she came. He tells her he can't get into the swing of things around the office. She reminds him of all they have been through and tell shim it will just take awhile for him to bounce back. They share an intimate kiss. She stays to eat lunch with him and he comments that he is starting to like the office better already.
Callie greets Malcolm as he comes downstairs getting ready for work. She immediately brings up the problem about Olivia and Neil. She just doesn't really think they slept together. He needs to try to mend his relationship with his brother. Malcolm gets so mad and he yells at her that he saw it with his own eyes and it is emblazoned on his brain now. He is not wrong so she had better just drop it or they will have their own problems.
Nina comes by to congratulate Ryan on his job at Newman Enterprises. She invites him to go with her to pick up Phillip on his last day at camp. He would love to but he has to be available for Victor. He will try though. They discuss Tricia's pregnancy and he tells her he is not comfortable with it yet. Nina tells him he needs to be more supportive. He is trying. Nina remembers that when they were married one thing he really wanted was a baby. Why is that different now? He looks at her for a minute and then remarks that Tricia is just so young.
Marissa comes by Paul's office and invites Lynn to lunch. She knows of a restaurant where some professional baseball players supposedly hang out. As they are about to leave Paul shows up. He just got back from Hawaii and he is ready to get to work. They tell him they were on their way to lunch. Paul gets upset and tells Lynn he has so much to go over with her and he also needs her to work late. She has a hurt look and says "Sure boss." Paul starts grinning and tells her he's just kidding! They leave. Later Nina stops by and wants a number for Christine in Hawaii. Paul gives it to her and asks if there is anything he can help with. She says no, it's just girl talk. Then Nina's cell phone rings. It is Brett and she tells him she would like to have a quiet evening, but she will see him in the morning. Paul guesses that Brett is the reason she wants to talk with Chris.
Neil is picking up some food at Crimson Lights when Olivia comes in and asks him to buy her a cup of coffee. They find a table and sit down. She tells him that right now she needs space and time to get her head together. She is trying to figure out why Malcolm has reacted the way he has, by just shutting them out. Neil points out that when she wanted to talk about her feelings for him, he didn't. Now he wants to talk about it and she doesn't. She says now is not the time. He tells her he has to go back to work and leaves. As Olivia is leaving a few minutes later, she notices Callie and finds out she works there. They exchange words and as Olivia is leaving Callie tells her to come back. Olivia tells her to say what she has to say and then get out of her face.
Jack is sweating it out waiting to hear from Victor. He finally goes to Victor with a report , but Victor knows why he has come by. Victor tells him he has drawn up a contract to make the deal official. He gives it to Jack to look over. The first thing Jack notices is an amount that he would have to pay for Jabot. He says no way, the deal is that Victor gives it to him. Victor says this is his deal like it or not. Then Jack notices that Brash and Sassy would be a separate company and not part of Jabot. He says that it has to be part of Jabot. Victor tells him that Victoria created Brash and Sassy after Jabot was purchased. Jack cannot have it, take it or leave it!
