Katie tells Simon that he failed her little test. Simon explains himself and insists that they will never make it if they loose faith in each other. Katie assures him that she loves him and they make love. Later, Margo learns that traces of Dahlias blood were found in her car. Luke runs home and tells Lily that he wants Aaron to stay. Lily shares the news that shes expecting with her son and Emma, but Luke remains disappointed that Aaron is leaving. Seeing how important it is to her son, Lily decides to talk Aaron into staying. Meanwhile, Holden tries to get Aaron to open up to him, but Aaron remains distant and insists on leaving. Lily arrives and asks him to hang around. Aaron eventually relents and agrees to stay at Emmas. Hal tells Barbara in no uncertain terms that Emily belongs in his house, not her. He makes it clear that they have no future together and he sets some ground rules for her to visit with Will. At the police station, James reiterates his offer to trade Carly and Emily for Barbara. Craig grabs the phone and ruins Jacks chance to trace the call. Paul arrives and overhears them arguing about whether or not to offer Barbara up as bait for James. Craig is persuasive and finally gets Paul to agree to talk to Barbara about doing something to help end Stenbecks reign of terror. Jack is determined to make a plan where no one, not even Barbara, will get hurt. Craig goes to see Barbara and asks her to turn herself over to James. When Barbara refuses, Craig points out how selfish she is being.