Jane suspects that Richard is still alive. Sydney suggests that they dig up the body to alleviate her sister's fears. They find that the body is gone, and someone has left a note threatening to turn the sisters in to the police unless they pay him $50,000. After initially trying to use counterfeit money, Jane and Sydney take the cash to the gravesite. Richard appears and points a gun at them. Michael finds Kimberly, who explains that she cannot remember the night of Bobby's murder. Peter is injured after picking a fight with a prison guard. Alison decides to move out of the building so that she and Jake can have time alone. Matt steals Michael's prescription pad to get access to more pills. Taylor convinces Kyle that they should buy a restaurant in Los Angeles.

Jane and Sydney escape when Jane hits Richard in the gut with a shovel. As a deputy is driving Jane and Syd to meet Samantha, they see Richard come out of a grocery store. Richard is killed in a shootout. At the morgue, Jane stabs his body with a brooch to make sure that he is dead. A sheriff returns their money, and orders them out of his town. Jane stops a bewildered Sam from moving out. Sydney invests her money in Jane's boutique. Amanda threatens Kimberly when she refuses to perjure herself. Kimberly later ensures Peter's release when she recalls a waiter who can serve as his alibi. Amanda is angry when Taylor shows up at the courthouse. Billy mistakenly believes Alison has invited him to her apartment, and gets into a fist fight with Jake when he finds him there. One of Matt's professors suspects that he is on drugs.

Jane slashes Alison's tires. Jake catches Jane following Alison and him, and orders her to stop stalking them. Jane files a restraining order against Jake. Sam pushes Billy away after Jane shares details of his past, but Billy is able to win her trust. Amanda denies Craig's attempt to undermine her in front of a client. Amanda becomes annoyed when Peter neglects his job and begins hanging out at Kyle's restaurant and drinking heavily. Michael sleeps with Megan, the woman he met while jogging. Sydney tells Kyle that the artist she represents is a Russian immigrant named Samuel Kirov, and offers to sell him the painting. Samantha reluctantly agrees to this deception. Matt is thrown out of medical school, and suspects that the doctor at the rehab facility, Dan Hathaway, squealed on him. Dan tells Matt that the classmate who got him hooked ratted on people after he was busted. Dan helps Matt get back into school after he agrees to counseling.

Kimberly orders Megan to stop ""servicing"" Michael, but he refuses to stay away from her. Michael cuts off Megan's relationship with her clients. Kimberly tells Megan that she is dying, and asks her to take care of Michael. Michael asks Peter to recommend him for chief-of-staff, but Peter decides to apply for the job. Kyle forbids Taylor from seeing Peter. Alison takes a temporary assignment at D&D, much to Jake's chagrin. Jake offers to make her a partner in Shooters. Craig tries to move too quickly in his relationship with Samantha. While snooping through his father's files, he discovers that he holds a controlling interest in D&D. A disoriented Jane decides to go home to Chicago for a few days. Dan suggests that he and Matt slow down their relationship.

Megan becomes concerned by the amount of time Michael is spending with Kimberly. When Megan convinces Michael to ignore a call from Kimberly and spend the night with her, Kimberly suffers a seizure. Taylor discovers that the new chief-of-staff won the job because he is sleeping with Dr. Shulman. Peter uses this information to blackmail Dr. Shulman. Nick becomes suspicious of Taylor's relationship with Peter. Nick and Kyle are arrested in a barroom brawl at Shooters. Kyle offers to host Jake's bachelor party to make it up to him. Billy isn't sure that Jake and Alison are ready for marriage. Craig tries to use his expected inheritance to seduce Amanda. Roommates Syd and Samantha are at each other's throats. Billy asks Sam to move in with him. Carter continues to reject Sydney.

Kimberly persuades Michael to grant her dying wish by sleeping with her one last time. Amanda uses Craig's infatuation with her to trick him into giving her half of D&D. Craig learns that his father cut him out of the will. Peter is appointed chief-of-staff. Taylor offers to cook him a celebratory dinner, but he stands her up to go to a dinner party with Amanda. A drunken and depressed Craig shows up on Amanda's doorstep, and she lets him sleep on the couch. The next morning, Craig leads Peter to believe that he slept with Amanda. A distraught Peter sleeps with Taylor. Alison and Jake are to marry in a civil ceremony, but Alison hides in the bathroom at City Hall. Jake postpones the ceremony. Alison becomes fed up with Jake's attempts to control her and turn her into a housewife. She stays with Billy and Sam, then decides to visit her sister to avoid the meddling couple. Jake believes that Alison is going to have an abortion, but she does not. Alison returns home and moves in with Aman

Michael takes Megan back after learning that she has returned to the streets. A woman sues Sydney after she is injured by a display at the boutique. Kyle's plans to force Taylor from their partnership are squashed when Sydney accidentally tells Peter that she slept with Kyle. Alison is confined to bed due to complications in her pregnancy. She gets caught up on all the gossip as she overhears arguments in the courtyard. She hears Taylor tell Kyle that Peter was her brother-in-law. Although Jake feels Alison should mind her own business, he shares this detail with Amanda when she tries to blame herself for the failed marriage. Amanda has Craig drive her to Peter's house to confront the couple. She forces Peter to realize that Taylor's appearance in the apartment building was no coincidence. Matt finds it impossible to cope with Chelsea's rebellious behavior. She runs away after overhearing Matt agree to leave her with his mother.

Sydney and Craig decide to quit D&D and start their own agency. They steal all of D&D's clients and employees. Syd and Craig get engaged. A panicked Amanda tries to back out of the jazz club, as she needs the money to keep her agency afloat. Unable to violate doctor-patient confidentiality, Michael has Taylor goad Peter into a public temper tantrum so that Megan will expose his ""rage epilepsy."" Michael tricks Peter into turning the chief-of-staff job over to him. Alison mocks Jake's dream of running the diner. She pushes him into spending more time with Colleen and David. Jake catches Alison drunk and in the company of another man. She had actually staged the incident with a friend from AA to drive Jake away. Sam is arrested because the police suspect she tipped off her father. Billy agrees to keep an eye on her and report suspicious activities to the authorities. Denise's new boyfriend tries to come on to Chelsea while her mother is asleep. Chelsea is unnerved when her diary is used t

Kyle finally saves Eric after he admits that he didn't sleep with Amanda. Kyle rejects Amanda's reconciliation attempt, as he feels he can no longer trust her. Eric returns all of the businesses so that Kyle will believe that he slept with Amanda after all. Kyle punches out Eric before he can leave town, then gets drunk and sleeps with Taylor. Michael interrupts Brett's vigil for Megan, and takes the credit when she recovers. Craig pines for Jennifer. Samantha gets into an argument with Billy's mother before the wedding. Billy and Sam patch things up after exchanging vows. Brett tips off Peter about Lexi's pill addiction.

Michael is forced to turn over his share of the cauterizing glove company to Brett. He threatens to use his clout as chief-of-staff to have the company blackballed. Brett sends Michael notes on Dr. Shulman's stationery so that he will make unwanted romantic advances toward her. Peter goes along with the plan, and Michael is stripped of his title. Megan's relationship with Brett escalates after he assures her that he is not using her to get back at Michael. Taylor pulls out the $25,000 and convinces Kyle that she won it at the casino. They sleep together. A drunken Billy kisses Connie, who immediately phones the out-of-town Sam. A woman named Charlie stops by the apartments and tells Billy that Connie is her ex-girlfriend. She explains that Connie is scheming to win Samantha away from Billy. Amanda and Sam are involved in a helicopter crash. They are left stranded in the wilderness, as Amanda struggles to survive. Bob re-surfaces at Peter and Lexi's house. Lexi insists on easing her gui

Kyle and Amanda are anxious to speed up the construction on their house, but learn that it will cost them. Amanda cannot afford to bring the apartment building up to code, so she decides to sell it. Kyle joins the construction crew for the house and offers to help Jane fix up the beach house. He helps her chase away a persistent but dorky neighbor. Dr. Shulman and the hospital's new corporate ownership try to stop Michael and Peter from treating uninsured patients. Jackie is assaulted by her boss. Dr. Shulman overhears Eve discussing her prison background with Jackie. She vows to use Eve's past to destroy Peter's reputation. Jackie holds Dr. Shulman at gunpoint, but Peter stops her from killing her. Jackie steals Dr. Shulman's car, then turns herself in, as she cannot handle life on the outside. Michael begins pursuing Megan. Lexi tries to goad Megan into popping the question to Ryan, but he beats her to the punch. He suddenly leaves town. Ryan goes to a boarding house in Poughkeepsie

Ryan visits with his daughter; but Terry O'Brien, her aunt and legal guardian, cuts short their time together. Ryan heads home and immediately tells Megan that he slept with Lexi in Mexico. He purposely drives her away, and also alienates Lexi with his bizarre behavior. Megan confronts Lexi and quits her job. Michael agrees to team up with Lexi after his ploy to win back Megan fails. Ryan vanishes for several days before Kyle finds him at the blacktop courts. Ryan reveals that he was married as an 18-year-old. His family was in a car accident; he pulled his infant daughter to safety, but the car erupted in flames and killed his wife. He is still wracked with guilt, and has kept a promise to Sarah by never remarrying. The parole board plans to send Eve back to prison for fraternizing with Jackie, but Amanda comes to her rescue. Peter and Eve fly to Texas to consider a bid on his father's old land. He returns home to defend himself against Dr. Shulman's attacks, but winds up resigning. E

Lexi buys the apartment building, using a front so that Amanda will unwittingly accept her offer. She takes over as landlord, prompting Amanda and Kyle to move in with Jane temporarily. Michael and Lexi drug Ryan, then snoop in his apartment and find information about his trip to New York. They pose as a priest and nun to gain entry to the boarding school and meet Sarah. Lexi, claiming to be Megan, convinces Sarah to give Ryan permission to remarry. Megan goes to work at AWA and steals Lexi's clients. Michael stops Lexi from attacking Megan, so she agrees to join him for drinks. Ryan comes to Megan's apartment to tell him about Sarah, only to find a naked Michael hiding in the closet. Peter and Eve agree not to spend their money, but she accepts an offer to buy half of Kyle's club. Eve bitch-slaps Dr. Shulman when she continues to make trouble at the hospital. Peter buys the hospital and implements more patient-friendly policies. He allows Dr. Shulman to purchase a seat on the board of

Michael and Ryan get into a scuffle, and Megan cracks Ryan over the head with a lamp. Lexi tends to Ryan's wounds and convinces him to sleep with her. Megan finally learns that Ryan has a daughter. Sarah overhears Terry threatening to keep her away from Ryan forever. Ryan decides to have Sarah come live with him. He and Lexi try to visit her, but discover that she has run away. Sarah turns up on Megan's doorstep. Amanda devotes all her time to landing the account of millionaire Tony Marlin. When Eve joins Amanda and Tony for an evening out, drunken college guys trash the club. Tony hints that he will only sign with AWA if Amanda helps him land Eve. Kyle and Jane nearly kiss and later dine together. Dr. Shulman stops interfering with hospital business after she and Dr. Visconti fall for each other.

Sarah and Terry escape serious injury because of the airbags, and Kyle and Ryan pull them to safety. Terry apologizes and grants Ryan and Megan permission to raise Sarah. Amanda tells Peter that she killed Kent, but claims that it was self defense. Lexi wants to go to the police with Eve's revelations about Amanda. Eve hits her over the head and leaves her bound and gagged in the bathtub (in her underwear). She reveals that she plans to murder Amanda and Peter. Eve tries to deflect suspicion by pretending that she is over Peter and insisting that her repressed memories were just fantasies. Dr. Shulman has Peter investigated for fraud and embezzlement, as his efforts to cover for Michael left him holding the evidence. He and Amanda plan to flee the country to escape prosecution. Kyle is thrilled to learn of Jane's pregnancy, but she discovers that Michael is the father. She tells Megan that she is leaving town. Amanda overhears this from a bathroom stall and warns Kyle as she stops by t