Paul refuses to fight, Carly presents a business plan to Lily, Craig confronts Carly and Meg goes to see Paul.
Barbara goes to see Paul at the police station. She says they can still fight but Paul has already given up. He says he doesn't deserve anything from anyone. Josie arrives and tells Paul she is going to stand up for him and see him through this. He tells both women to leave him alone because he is worthless. Barbara leaves. Josie tells Paul to grow up and stop blaming his problems on his father; she leaves, too. Babs returns a few minutes later and begs Paul to listen to her and fight these charges. Paul won't listen. "You have to stop. I'm never going to be the son you want me to be," he says. Barbara is crushed.
Carly wakes up hungover. Craig calls and happily goes on and on about their business deal. She suddenly remembers the kiss and hangs up. Carly calls Lily.
Lily meets Carly at The Lakeview. Carly presents her vodka business idea and the designer label; she doesn't mention Craig at all. She says women will love their designer brand just like they love other designer drinks. Lily is intrigued and looks over Carly's presentation, questioning her about the idea. Carly swears it was all her plan. Lily's only hold up is their shared past, specifically Holden. She says between the long hours and all of the time spent together that their fledgling friendship might not stand the stress. Carly says they can handle it and gives Lily her business plan papers. Lily says she'll think it over and will have an answer by the end of the day. Lily runs into Craig in the hall. He sees Carly's design and questions Lily, who says Carly's idea is great. Craig mentions the Brooklyn tasting and Lily wonders how much Craig is involved. Lily mentions that Carly is looking for a business partner, annoying Craig. He doesn't let on just how deeply he is involved.
Dusty catches up with Meg at the hospital. She has had Eliza checked out and is ready to go so he drives them back to the farm. Meg takes the baby upstairs. Holden arrives. Meg comes back downstairs and stands by Dusty. Holden apologizes for his harsh words to Dusty when Eliza was missing. They shake hands. Holden goes to finish his chores; Dusty offers to help. Smiling, Holden turns him down and leaves. Meg thanks Dusty again and then offers her own apology. Dusty apologizes for his part in Paul's caper, saying he pushed the issue. Meg is certain Paul would have kidnapped Eliza sooner or later anyway. Eliza starts to cry. Dusty warms a bottle as Meg goes after the kiddo. Josie arrives and insists on seeing Meg. When Meg comes down Josie explains why she stood by Paul. She insists that Paul wouldn't hurt Eliza and asks Meg not to punish him. She even tells them that he has given up and won't fight for his freedom. Dusty thinks this is just another plot; he thinks they should all write Paul off. She asks Meg to appeal to the judge on Paul's behalf, saying they are both as wrong as Paul. She leaves. Meg asks Dusty to watch the baby so she can see Paul for herself. Josie watches Meg leave and then returns inside. She asks Dusty not to hate her. Dusty says they can't have a future with a past built on lies.
Lily goes home and tells Holden about Carly's business plan. Holden isn't sure about this at all. Lily wonders if this is a way to put the past behind them finally. She shows Holden all of the plans. He asks what the difference is between the loan and the business idea. Lily says the difference is Carly came to her and not him. He is still worried about her and finally Lily decides that she might be jumping the gun.
Carly returns home and calls the backer in New York. She leaves a message that they need to meet because Craig Montgomery isn't part of the business any longer! Craig arrives! She insists she isn't feeling well but Craig pushes the issue and demands to see her latest drawings. Craig brings up Lily! She bluffs but Craig calls her on it; he says he knows about her meeting with Lily and the new business. "This was my idea," he says angrily! He reminds Carly that all of this was his idea, right down to the new distributor. He accuses her of running from their business deal because of their kiss and then assures her that he isn't interested in her at all. Carly doesn't believe him. He rips up the logos Carly has designed, saying she can't steal his business. "I replace you," he says. "There are a lot of out of work designers out there." Lily calls and turns down the business plan. But, she says the business idea is great. Carly pretends to be getting good news, which throws Lily. She hangs up and tells Craig they need to talk about their business rationally. Craig reads between the lines, says he knows that was Lily and that she backed out. Carly admits it is true; Craig is triumphant. Carly tries to explain her actions by saying she was nervous about partnering with him. Craig says he has to trust his business partners and heads for the door. Carly accuses him of having a hidden agenda – like wanting to sleep with her! Craig says he'll be in touch and leaves.
Meg arrives at the police station. Barbara begs her not to hurt Paul again. Meg says she needs answers and goes into the interrogation room where she confronts Paul about taking Eliza. She says he doesn't know anything about love as Paul says he was just trying to have time with his child. Meg tells him what Barbara and Josie want from her; Paul tells her not to do anything to protect him, insisting he belongs in jail. With tears in her eyes Meg says she has to put Eliza first – and him being locked up might not be in Eliza's best interests. "Give me one good reason I shouldn't want you out of both of our lives for good," she says. Sadly Paul says he loves her and Eliza and can't imagine not wanting them both. "I'm done with you, Paul. I have to think of Eliza now," she says and leaves. Josie arrives and updates Paul. He says he'll get her money so she can start over; she says she doesn't want it.
Meg returns to the farm, tells Dusty about the meeting and then insists that Paul really has given up. She worries that Eliza will hate her for not standing by Paul.
Next on As The World Turns:
Jack and Carly argue about Sage's play and Craig.
Luke finds a strange message.
Alison's relationship with Matt grows.
Casey watches Alison and then looks at a note that reads, "Got You Covered - M".
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