Jane throws Sydney out, but Amanda leases her an apartment in the building. Alison travels to a ranch to make a presentation to millionaire computer exec Steve McMillan, but it does not go as planned. Matt decides to marry Katya. Michael sleeps with Sydney while Kimberly is out of town at a conference.

Jane has suffered a stroke, and is left paralyzed on one side. Sydney insists that she did not realize the pills would cause this reaction. Kimberly suggests that Syd dodge suspicion by becoming Jane's caretaker. Jane moves into the beach house. Brooke asks Billy to meet her at the hospital, and says that she has suffered a miscarriage. She pushes Billy to get her pregnant ""again,"" as she can only gain access to Hayley's money through a child. Billy learns the truth from Brooke's doctor, and declares that the marriage is over. Bobby convinces Amanda, Peter and Alison to join him for a weekend in Palm Springs. Billy drives down to talk with Alison, who decides to leave early. Bobby declares his love for Amanda. They kiss at midnight on New Year's Eve, as Peter secretly looks on. Bobby settles a malpractice suit for Peter. Matt stops Alan from moving to New York by asking him to move in with him. Billy arrives home to discover that Brooke has slashed her wrists.

Alison is put off by Billy's obnoxious behavior, and pushes him away. Amanda agrees to give Billy a raise if he can win a prestigious airline account. He sleeps with a rival executive to get her to reveal their strategy, then uses it to undermine them. Amanda turns to Peter for comfort after the bribery allegations against Bobby become public. An incensed Alycia threatens to reveal Peter's scam unless he stays away from Amanda. Jane has to cancel her fashion show because Richard has taken her designs. She sabotages Richard's show by using a tiki torch (part of the show's theme) to trigger the sprinkler system. Kimberly begins suffering migraines.

Amanda persuades Teri to drop the charges against Peter by making Brandi the spokesperson for a cosmetics company. ""Betsy"" throws a knife at Michael after he reveals that he slept with Brandi. When he returns, Kimberly begs him to stay away for his own good. She turns to Peter for help, but vanishes before he can aid her. Bobby's friend Jimmy tells Sydney that Alycia and Peter conspired to take Bobby down. Syd shares this news with Bobby, who sets up a confrontation with Alycia. When he tries to attack her, she knocks him out a high-rise building to his death. As Peter is about to be questioned about Bobby's death, Alycia calls from her car and confesses. She agrees to turn herself in, but loses control of the car while picking up her phone, and has a head-on collision with a semi. Dominick gets Matt to set him up on a date with Jo. She convinces him to see Tyler again, and Laurie reveals that the boy was abused by her ex-boyfriend. Jane tells Jake about the rape in the hopes that he w

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.

Amanda suffers a breakdown as she sees her agency slip through her fingers. Alison convinces David to get Jake to invite Colleen and him to move to Ojai. Alison decides to divorce Jake and move to Atlanta. Billy meets her at the airport, and she kisses him goodbye. Denise wins custody of Chelsea, even after her daughter reveals the incident with her mother's boyfriend. Denise has a change of heart and decides that Chelsea is better off with Matt. Peter realizes that Michael set him up after a test reveals that he doesn't have rage epilepsy. He throws Michael through a window at the office. A hurt Megan rejects Michael. Peter takes Taylor away for the weekend, and is about to push her off a lighthouse when she announces that she is pregnant. Reilly flees to Mexico to distract the police, then returns and kidnaps Sam from the grocery store. Kyle bolts from Sydney's wedding after learning that Amanda is planning to move to New York. He stops her from leaving and sleeps with her. Sam pulls

Christine tells Kyle to move on with his life. She declines Amanda's wedding invitation, but later has a change of heart and comes to Los Angeles. Peter shows up in Sterling's hotel room with a tape recorder in the hopes of proving that Sterling is to blame for their rift. Lexi's father collapses during the argument and later dies. Megan is jealous when Brett comforts Lexi. A gunshot victim named Spider convinces Michael that he can get rich by starting a clinic in the man's neighborhood. Michael persuades his family to invest money in the venture. Billy continues to pose as Craig, but Jennifer is forced to tell Mia the ""truth"" after she catches Billy with Samantha.

Kyle does not show for the wedding after discovering a suicide note from Christine. He finds her car parked on the railroad tracks, and pulls her to safety. Amanda postpones the ceremony until Kyle has resolved the situation. Christine receives a special visit from Nick in the hospital. Lexi refuses to speak to Peter after hearing the recording of his argument with her father. Spider agrees to provide Michael with ""protection"" if he treats his injured friends without reporting them to the authorities. Jennifer offers Billy a sympathetic ear, and advises Sam to escalate her flirtation with Jeff.

Lexi, Amanda and Eve are caught in a bank hold-up involving men in Santa Claus suits. The guys (including Dr. Visconti) plan to play Santa at area elementary schools, but are mistaken for the bank robbers and arrested. They are detained until Lexi, Amanda and Eve clear up the misunderstanding. Amanda begins to worry about Kyle's drinking. Travis tries to blackmail Eve into sleeping with him, but Kyle pummels him and orders him to leave town. Lexi has an enlightening conversation with Travis, which leads to a fist fight with Eve. Lexi warns Peter that his current and former wives are keeping a secret from him. An eccentric judge orders Michael and Jane to spend the holidays performing community service together. Jane forgives Michael, who then has himself delivered to her apartment in a box. Lexi surprises Megan with a catered Christmas dinner, only to find that she has spent the greater part of three days in bed with Ryan. The teen pop group Hanson performs a charity concert at the clu