As Kate is walking along the beach, she comes across Sawyer's belongings. When he sees her, he comes out of the water, naked. When she walks away after he hits on her, he has a flashback of having sex. His girlfriend then remembers that he has a meeting and that he's late for it. When she tells him, he rushes to get dressed and grabs his briefcase, which comes open and spills bills of money onto the floor. When she sees the money, he tells her that she wasn't supposed to have seen that.
The flashback ends as Sawyer is walking through the jungle. He hears noises around him. He begins running and then catches Boone looking through his stuff.
Meanwhile, Jack is cleaning Sayid's wound that he got from getting hit on the back of the head. After Sayid tells Jack what happened, Shannon arrives with a beaten-up Boone, who tells them that Sawyer did it.
As Charlie visits Claire and tries to convince her to move to the cave, to which she refuses, Jack is cleaning up Boone's wounds. He tells Jack that he was looking through Sawyer's stuff because Shannon's inhaler ran out and, and he believes that Sawyer has her other inhalers. Jack goes to Sawyer and demands that he give Shannon her inhalers. When Sawyer refuses, the two are about to fight, but Kate interrupts. After Kate and Jack leave, Sawyer has a flashback to explaining about the money to his girlfriend. He says that he's buying a share in an oil mining operation for $300,000, but he only has $140,000, so he's going to meet with an investor to get more money and split the profit. However, his girlfriend offers to pay the rest instead. When he asks how she can, she says that she'll get it from her husband.
A little later, Kate goes to Sawyer and offers a trade for the inhalers. He says that he'll give it up for a kiss from her, but Kate doesn't believe him. She then tells him that she knows about the piece of paper that he keeps in his pocket. He angrily gives her the letter and makes her read it. The letter is from a child. It says that Sawyer had sex with his mother and stole all his father's money, and the father then killed her and himself. The child vows to one day give this letter to Sawyer so he'll know what he did. Sawyer then asks Kate for the kiss, but when she doesn't, he walks off.
Elsewhere, Sayid talks to Locke about who attacked him. Locke says that he thinks Sawyer did it since he has the most to gain by staying on the island. When Sayid tells him that Sawyer was miles away at the time, Locke suggests that Sawyer may have just delayed the rocket's fuse.
Later that night in the cave, Shannon is having breathing problems. Jack demands that Sawyer give him the inhalers, but he once again refuses. Jack then begins attacking Sawyer but stops when he sees the horrified looks on everyone's faces. As Jack walks off, Sawyer has a flashback of tricking his girlfriend's husband into investing.
Back on the beach, Claire tells Charlie that she's craving peanut butter. They then make a deal that if Charlie gets her peanut butter, she has to move to the cave. Meanwhile, Jack helps Shannon through an asthma attack. Sayid then convinces Jack to let him ^interrogate^ Sawyer. He and Jack then knock Sawyer out and tie him up in the jungle. When Sawyer still refuses, Sayid begins sticking reeds under his fingernails. He then threatens to cut out Sawyer's eye, and he finally gives in. Sawyer tells them that he'll only tell Kate where the inhalers are. Sawyer then has a flashback about talking to his 'business partner'. It turns out that the oil mining operation was just a scam. However, the business partner tells Sawyer to get him his money or else.
As the flashback ends, Sawyer sees Kate. He says that he'll tell her only if she gives him the kiss. After they share a long kiss, Sawyer reveals that he never had the inhalers! After punching him, Kate walks off and tells Jack. Sayid doesn't believe Sawyer and goes after him with a knife. However, Sawyer gets free and the two struggle. Sayid ends up stabbing him in the arm, hitting an artery. After Sayid runs to get the medicine bag, Sawyer flashes back to when he was closing the 'deal'. As he is about to leave their house, his girlfriend's son walks into the room. Sawyer stares at him and suddenly says the deal is off. As the husband starts arguing, the wife lets slip about the deal she had with him, and Sawyer then leaves.
Sawyer later wakes up on the beach, and his arm is bandaged up. Kate tells him that she reread the letter many times, trying to figure out why he lied to everyone. She then reveals that she knows his secret; the letter wasn't written to him! He wrote the letter when he was a child, and it was meant for the real Sawyer!
Elsewhere, Sun gives Shannon herbal medicine, and it helps her asthma. As Charlie gives Claire some imaginary peanut butter so she'll go to the cave, Sayid leaves the camp because he is ashamed of what he did.