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.

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.

The jazz club celebrates its grand opening. Amanda pushes Kyle away after he hires Jennifer as a bartender. Sydney undermines Amanda's authority at D&D.

Michael decides to convince Peter that he has a disease called rage epilepsy. He and Taylor drug Peter, then tell him that he struck Taylor during a blackout.

Amanda and Kyle seek divorces so that their spouses can't get a cut of the jazz club. Sydney decides to give up her lawsuit for a $50,000 settlement because she doesn't want to hurt Craig.

While having lunch with Megan, Jennifer hears Kyle's voice. She slaps him. Kyle visits her at the beach house, and apologizes for the way he broke off their Boston affair.

Sydney suffers broken ribs and a separated shoulder in her fall, but her pain is eased when she learns that she could receive five million dollars. Craig tells Amanda that he will take care of the lawsuit by seducing Sydney.

Jake and Alison hit the road in the hopes of finding a place to get married. Their car breaks down in a small town, where they eventually tie the knot.

Kimberly's mother and Michael argue when Mrs. Shaw announces her intention to take her daughter back to Cleveland. Michael insists that Kimberly is too weak to travel.

Kimberly collapses during an argument with Michael. She learns that she has an aneurysm, but refuses to undergo surgery.

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.

Amanda rejects Craig, who seeks a relationship after their night together. Kyle realizes that Taylor has been lying to him.

Nick drops hints about the photos to Peter. Taylor drugs Nick while Peter removes the pictures from his apartment. When Kyle arrives home, Taylor pretends that Nick is attacking her.

Nick follows Taylor to Peter's house and witnesses a romantic encounter. He later photographs the couple's late-night rendezvous at a golf course. Megan discovers that Kimberly's illness is in remission.

Megan is furious to learn that Michael has slept with Kimberly. She forgives Michael, but then stakes out the beach house and nearly runs over Kimberly.

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. 

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.

Kimberly pulls Michael from the wrecked vehicle while Megan calls for help. Michael experiences internal bleeding, and flatlines.

Michael insists on spending time with Kimberly after learning of her terminal illness. She reveals to Megan that she will crash her car during the next rainstorm.

Michael signs the divorce papers, and marries Megan during their trip to Las Vegas. Peter learns that Kimberly has a brain tumor, and breaks the news to Michael. Jane is robbed at gunpoint at the boutique.

Michael tries to reunite Peter and Amanda in the hopes that Peter will again make a contribution at the office. Kyle tries to play matchmaker at his birthday party, but Amanda isn't ready to talk to Peter.

Sydney resents Jane's new relationship with her mother. Sherry lies about the identity of Jane's biological father, but later reveals that he was a producer with whom she had slept with to win a part.

Kimberly rejects Michael's final attempt at a reconciliation. He decides to stay with Matt for a while, but Kimberly urges Megan to get Michael back. Dan pressures Matt to move in with him.

Kyle rejects Sydney and vows to make his marriage work. Jane also pushes Syd away as she searches for her birth mother. She learns that her mother is a former actress named Sherry (Larson) Doucette.

Craig takes the reins of D&D. Arthur pays Amanda to keep an eye on Craig so that the business can stay afloat until he resumes control.

Kimberly orders Megan to stop "servicing" Michael, but he refuses to stay away from her. Michael cuts off Megan's relationship with her clients.

Taylor reveals that she is the younger sister of Peter's late wife Beth. She hangs out with Peter while Amanda is away on a business trip, and helps him pick out a ring for her.

Amanda and Peter continue to fight constantly. Peter decides to stay with Michael and Kimberly for a while.

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.

Jane saves Jake and Alison from the fire. Jane apologizes for her outburst, but later tries to seduce Billy to make the couple jealous.

Peter fires Sydney after learning that she sold his house (which he had listed as a company asset) to pay the practice's debts. Peter has to move into Amanda's apartment.

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.

Jane suspects that Richard is still alive. Sydney suggests that they dig up the body to alleviate her sister's fears.

Richard torments Jane's conscience by leaving clues about the murder around her home and office. Detective Wylie tells Amanda that Peter is actually Dr. Peter Howell, who is wanted in Kansas City on charges of murdering his wife.