Billy tells Amanda that he and Alison are back together. Amanda responds by removing Alison from the Microcomp account because she was romantically involved with the client. Amanda moves forward with her plans to evict Jake, but Jo refuses to testify against him. Amanda relents when she needs Jake's help with a plumbing problem. Palmer confesses his guilt to Amanda and skips town. She goes back to Jake. Jo goes to her ten-year high school reunion and runs into Reed, an old boyfriend who has just been released from prison. He later turns up at her apartment. Michael has a breakthrough at a physical therapy session, and regains the use of his legs. Sydney is busted for prostitution. Michael bails her out and agrees to keep quiet if she helps him break up Jane and Robert.

Tony orders Amanda to distract Peter throughout the cruise so that he can put the moves on Eve. Amanda accompanies Peter on a day trip to an island and ensures that they miss the boat. Tony tells Eve that Amanda promised her to him as part of their deal. Eve causes him great pain, and later ends her friendship with Amanda. Peter and Amanda sleep together and confess that they have never gotten over each other. Lexi decides to seduce Tony to steal his account, much to Michael's dismay. Ignoring a threat from Tony's unstable wife, she destroys the film from Amanda's commercial, before coming on to Tony and asking him to keep her in mind as a second choice. Terry has a social worker take Sarah away from Ryan. Ryan defends Terry against allegations of child abuse. Terry allows Ryan to have custody of Sarah, but will stay with them for the summer. Megan notices that Terry seems a bit too affectionate toward Ryan. Kyle and Jane move very quickly in their relationship.