Karen's kidnapper, Phil Harbert, brings her to a guestroom in his home. He's laden it with food and new clothes for Karen, telling her he wants her to be comfortable. He tells Karen she hasn't been kidnapped, she's just disappeared. Greg uses the cleanup of Empire Valley as publicity for Peter. Greg tells him that he won't really clean it up until Lotus Point goes bankrupt. Peter tells Jill, who tells Gary.Val is overjoyed when Ben comes home. Later Ben receives a note from his old friend Jean Hackney to meet her. He goes to her boutique, which is a cover from underground activities. She asks him to spy on Greg, and kisses him. He tells her he no longer can do either activity. Flashback Scene: Young Mac, Greg and Phil go to the Matheson's, only to find out they've gone to their summer residence. Mac is upset because he didn't get to say goodbye to Anne.

Phil makes Karen cut her hair because he likes short hair better.Ben refuses to spy for Jean. The arsenic levels at Lotus Point are rising. Gary decides to run for the senate himself, against Peter. He thinks that this will pressure Greg to really clean up Empire Valley. Jill agrees to be Gary's campaign manager, and this angers Peter. Jill tells Peter that only Gary is important to her now. Mac breaks down to Val over Karen, and Val comforts him. Flashback Scene: Mac, Phil and Greg see Anne on a train, but Mac is afraid to approach her. Greg speaks with her, and she slaps him. Mac apologizes to Anne, and she agrees to go out with him. He falls asleep by her pool while waiting for her to get ready on their first date.

Jean calls Ben and he tells her never to call him at home. Ben poses Val a hypothetical question: Should he do a report on a man who was once in a subversive group that bombed a building, but had gotten out and was now a responsible man with a family? Val says no, as it would hurt his family. Abby shows up at a speech that Gary gives, and tells Jill that she will be with Gary morning, noon and night. However, she gives Peter copies of Gary's speeches and schedule. Phil tells Karen that he wants Mac to feel what it's like not to know where his wife is. Phil says that Mac sent him to jail and he didn't know what was happening to his wife, and then she died. He says he'll let Karen go in a year. Greg decides to really clean up Empire Valley. Phil stops by to see Greg. Greg excitedly tells Laura that he's a good friend from law school.

Flashback Scene: Mac tells Phil that the firm he is working for is involved with the mob, but Phil says he has a wife to support. Later Phil is indicted, and asks Mac to lie on the stand, but Mac says he can't. The polls begin to shift in Gary's favor. Peter decides to use married Gary's affair with Jill against him, although they've decided to hold off until after the election. Mac has a phony story released that they found the kidnapper's fingerprints and know who he is. This makes Phil very nervous, and Greg figures out that he is the kidnapper. Greg confronts him and gives him one day to undo the situation. Phil pours gasoline all over the house and lights a match. As the house starts to go up in flames, Karen discovers a trap door to the attic.

News of Gary and Jill's affair hits the papers. Abby's furious, and has a little talk with Peter. At a debate, Peter makes it clear that Gary's personal life is not an issue. Gary and Jill resume their affair. Greg has Phil's license plate traced to an address in Dillon, CA, and drives there. Jean keeps trying to call Ben, and he keeps hanging up on her. Karen escapes the burning house. Phil sees her on the road and tries to run her down. She escapes into the woods and eventually comes across a vacant house. She breaks in, but Phil finds her. She throws a bucket of ammonia in his face and runs out back to the barn. He is breaking down the barn door when Greg shows up and stops him. Greg says he'll let him go for old times sake, as long as he goes back east and never gets involved in their lives again. Karen is confused when she hears 2 cars leave. Police tell Mac they received a tip about where Karen is. Mac and Karen run into each other's arms, and he brings her home.

Abby and kids move back to the ranch to help out Gary's family image. Gary catches Abby in bed with Peter, but doesn't care. Olivia smokes pot and is suspended from school and steals Abby's car. She's is in a minor accident and picked up for driving without a license. Gary gets her, and misses a debate. Mac tells Karen about Paige and they invite her to dinner. Roses are delivered from Phil with a card that says ""You won't get away next time."" Greg changes his tires and gives Phil's name to police, saying he recognized him from the police sketch. They show his picture to Karen, who ID's him. Mac is shocked. Seeing his picture on TV, Phil shows up at Greg's office and says that police think 2 people were in on the kidnapping, and he'll tell police that Greg hired him unless he will help him get out of the country.

Mac thinks Greg has something to do with Karen's kidnapping. Greg puts Phil up in a motel until he can make arrangements to send him to Hong Kong. They agree to meet the next morning. Phil orders a pizza. The delivery boy recognized Phil from TV and calls Mac. Michael is uncomfortable with his attraction to Paige, but they begin to kiss. Jean introduces herself to Val as an old college friend of Ben's, and Val invites her to dinner. Ben tells Jean to leave him alone or he'll expose her on TV. While grocery shopping, Ben loses Bobby and later finds him with Jean. Scared, he goes along with her and supports Peter on TV. Abby is furious, but tells Peter it was her idea. Peter wins the election.

Police go to Phil's motel, but he's across the street, and people yell to the police where he is. Phil runs into the street, and is hit by a car. At the hospital, Phil tells Mac that Greg was behind the kidnapping, but Mac knows he's lying. Phil dies.Peter is upset with Sylvia's drinking, because she talks too much. Sylvia says she wants Peter to get money from Abby for her, or she will tell a tabloid the truth, because she doesn't care who pays her as long as she gets money.Lotus Point has a grand re-opening. Paige spots Peter, and is definitely interested in him. Sylvia makes a drunken spectacle of herself. She has a ""spell"" and asks Peter to pick up a refill of her prescription. The pharmacist tells Peter that if Sylvia takes too many pills, it will cause cardiac arrest so Peter purposely gives her too many. Both Greg and Abby pressure Peter to join certain committees, but he stands up to each of them and refuses.