Cash comes across a character called The White Rabbit and is instructed to follow him. The White Rabbit leads Cash into many traps where the Smileys are ready to ambush him, but he kills them all and carries on. He soon enters a large room filled with Smilies with shotguns and is informed that this is the part of the movie where Cash is supposed to die.
Cash fights back and kills the remaining Smileys and heads outside where he encounters the Cerberus and must get the key off the White Rabbit to escape Darkwoods Penitentiary. He heads up the tower to kill the Rabbit and once he has the key, he finishes off the remaining Cerberus and escapes.
Before the game's release, Kill the Rabbit was once known as Pool of Tears.
Two beta Cash corpses can be found. One is tied to the electric chair and the other is lying dead on a bed near the end of the asylum.
Just before the room where Cash kills the last of the Smileys, there is a locked door with a sign above it that says: Penitentiary Armory. There is a switch in the next room that opens it and inside are 3 Shotguns.
In a room, where you can find dead bodies in bodybags lying on tables, there will be a painkiller, behind one of the tables. If you go to pickup the painkiller, one of the corpses will get up, make a scary noise, then it lies back to the table.
At the end of the level, there will be a Cerberus guard inside the Penitentiary that can be seen through the windows. If you leave two corpses in the platform that are needed to open the gate, one of them will still be there and you'll be able to return and find him. Despite showing alert status if he sees you, he's completely harmless and is the only Cerberus in the entire game that is unarmed. You can kill and even execute him without problems.