Sydney (claiming to be someone named Miranda) hangs around the beach house and attempts to seduce Michael. Michael regains his memory when he is nearly struck by a car in a restaurant parking lot, but doesn't immediately reveal this. Michael leaves Sydney in an embarrassing situation in Jane's bedroom, prompting a suggestive remark from Chris. Michael confronts Kimberly and dares her to kill him, but she decides that she loves him too much to finish him off. Billy and Alison bicker constantly at the office. Jo extends an olive branch to the Carters, only to have them laugh in her face. Palmer tells Amanda that he cannot go to prison before paying off some debts, as he fears his creditors will harm her. He tells her of a secret safe deposit box and convinces her to withdraw $500,000. Palmer kidnaps Jake on the boat at gunpoint, and explains that he and Brittany are going to take the money and flee to Mexico. Brittany double-crosses Palmer, shooting him in the back. Jake discovers that t

Amanda and Michael clash over the treatment of her cancer, but she eventually realizes she must turn to him for support. Amanda shares her condition with Billy, but asks him to keep it a secret. Alison pries the truth from him after he seems a little too tolerant of Amanda's behavior. Sydney attends a retreat with Rikki and other cult members. She finds it unsettling when Martin demands that his followers try to scam money from their families, and decides to leave after seeing Martin in bed with two women (including Rikki). Martin agrees to let her go, but he and Rikki pursue her and throw her into an underground pit. John pulls Kimberly out of her car and threatens her at gunpoint after learning that she orchestrated the attack on Matt.

Jake throws Jess out of his apartment, and assaults him after his brother taunts him about Jo. Jess hires a thug to stage a robbery at Shooters and shoot Jake. Brooke convinces her father, Hayley, to offer Alison a job in Hong Kong. Billy follows Brooke's advice and persuades Alison to take the job. Alison writes a note to Billy in which she professes her love, but Brooke refuses to give it to him. Matt learns that Paul is married, but continues the relationship when Paul says that he needs Matt's help to come out. Paul's wife, Carol, threatens Matt's life. One of the alleged drug dealers reveals to Sydney that he is actually an FBI agent. He talks her into resigning so that she won't be implicated when the feds raid the design firm. Sydney is stunned to discover that the entire fiasco was a set-up engineered by Jane to oust her from the business. Kimberly seeks Amanda's friendship, then tricks her into believing that Michael is stalking her.