Jack goes to see Carly and tells her that he only cares about her and promises to end his marriage with Julia immediately. Jack tries to convince Julia that their relationship is over, but Julia thinks they can still make it work. Dr. Michaels tells Jack that if he ends things with Julia, she will snap. She needs time to get healthy before she can deal with losing the one thing she defines herself by: her marriage. Jack tries to explain to Carly why he cant break things off with Julia, but Carly furiously smashes their compass. Meanwhile, Holden assures Joe that he has no intention of hurting Rose, but he has to make the right decision for his kids. Simon tells Holden that Lily is through with him and he just wants her to be happy, even if that means her being with Holden. Rose is disappointed to learn that Simon is letting Lily go that easily. Rose plants her letter from Holden in Lilys bag. In the letter, which was written while Rose was pretending to be Lily, Holden proclaimed his love for the new Lily. Katie goes to see Lily looking for information about Simon. Lily tells Katie that Simon will never love Katie. When Simon tells Katie that he is leaving Oakdale, Katie begins scheming to keep Simon around.