Craig's ad agency collapses after Eric pressures his investors. Kyle accuses Amanda of being insensitive to Craig's situation. She offers Craig a job, which he rejects. Billy nearly proposes to Samantha, but backs off. When Sam says that she wants to marry him, he declares that he is not ready for marriage. She leaves him. Kyle is annoyed when Eric decides to move to Los Angeles. Michael accompanies Peter to a medical conference in Santa Barbara to escape Taylor's demands that he ""service"" her. He is left completely exhausted when both Taylor and a suddenly conciliatory Megan show up at his hotel. Brett's ex-wife, Lexi, comes to town to discuss their financial arrangement. She and Peter are instantly drawn to each other. Taylor is certain that Michael has gotten her pregnant. Mrs. Shaw warns Brett to stay away from Michael, but Brett says that he is developing a plan to ruin him.

Kyle and Taylor learn that the same company that took their Boston restaurant has bought the building that houses Kyle's and the jazz club. They investigate, but are unable to prove that Eric is responsible. Eric agrees to serve as Megan's mentor, but states that he holds no romantic interest in her. Amanda goads Eric into admitting his feelings for her, then tells him that she doesn't feel the same way. He vows to destroy her. Michael's partnership with Craig falls through. Jen sabotages the cauterizer so that all of Michael's other investors will lose interest. Brett believes that Michael is to blame when Lexi's lawyers get a hold of his financial records. Mrs. Shaw pays Brett a surprise visit. Peter is distraught to learn that Lexi plans to return to Ohio. He professes his love in the courtyard, much to Brett's surprise.

Brett learns that Mrs. Shaw tried to shoot Michael. He threatens to turn her in unless she returns to Cleveland and checks into a sanitarium. Michael and Megan catch them at the airport, but Michael agrees to Brett's plan. Mrs. Shaw escapes during a stopover and returns to Los Angeles. She slips into an operating room and tries to attack Michael with a scalpel. Megan tackles her and is slashed in the stomach. She has complications during surgery and lapses into a coma. Brett holds a bedside vigil. Eric decides to seize control of Amanda's agency. She finally gives in and agrees to sleep with him. Taylor tells Kyle, who breaks into the hotel room and throws Eric through a glass door. He will only keep him from falling off the balcony if he says that he didn't sleep with Amanda. Lexi falls apart when she runs out of pills. Brett agrees to refill her prescription. Craig and Billy bond on a bowling date with Sam and Jennifer. Billy asks Craig to be his best man. Craig loses Jennifer by sle