Kyle attempts to manipulate Taylor into revealing the truth about her scheme. Taylor ends up admitting the truth after Kyle threatens to break up with her. Amanda and Kyle's divorce is finalized. Amanda marries Rory, as Kyle shows up at the ceremony seconds too late. Taylor attempts to take her own life. Jennifer informs Billy that she has known the truth about Sam's affair with Jeff for months. Sam attacks Jennifer, but Billy defends her. Peter ends up realizing that he still loves Amanda.
Rory attempts to poison Amanda after she refuses to give him part of the agency. Kyle learns the couple's secret honeymoon location. Rory attempts to stab Kyle, but falls on the knife himself and dies. Amanda recovers from her illness. Lexi discovers that her father set her up to take the blame in an embezzlement scheme. Peter admits his feelings for Amanda and ends things with Lexi. Taylor is saved from the carbon monoxide poisoning. Peter forces Michael to face his responsibility after it is revealed he could be the father of Taylor's baby. Sam and Billy decide to get divorced. Billy and Jen grow closer.
Feeling guilty guilt about Lexi's plight, Megan manages to convince Brett to marry Lexi. Michael helps Taylor deliver a baby and softens towards her and the baby she is carrying. Peter starts to pursue Amanda, who has remarried Kyle. Billy moves in with Jennifer. Samantha attempts to use Jeff to make Billy feel jealous.
Michael goes to a college reunion in Chicago, where he bumps into Jane. The connection between them is still there but Jane tells him that she is getting married in a couple of days. Michael later finds out that this is not true, and the two reminisce about the good times in their relationship. Jane ends up following Michael back to Los Angeles in the hopes of rekindling their romance. Peter turns to a shady former patient for help when his efforts to woo Amanda fail. Billy and Samantha vie for an Italian client's in-house advertising position.
Michael has Taylor taken away in an ambulance, but she and Jane later find each other. Jane is angry to find out about the pregnancy, and rents an apartment at the complex. Amanda offers Jane a job. Jane reconciles with Michael, and agrees to help look after Taylor. Taylor decides that she isn't fit to be a mother and asks Jane and Michael to adopt her baby after it is born. Amanda ends up being kidnapped. Samantha convinces Jeff to help her.
Amanda is held hostage in a desolate cabin but after she manages to escape she is quickly re-captured. Kyle is forced to turn to Peter for help after the kidnappers demand a million-dollar ransom. After Peter shows up at the cabin he finds that Amanda is gone. She has managed to escape again, with one of Beck's men in pursuit. Jen is upset after Billy says that he will go see Alison in Atlanta. Jeff breaks up with Sam and accepts a job as a sports radio talk show host in Tampa. Sam admits the truth to Jen. Michael tells Billy the truth and he breaks up with Jennifer. Jane and Michael agree to take custody of his and Taylor's son. Taylor ends up going into labor at the beach house.
Amanda is followed through the woods in the middle of a storm. She falls over the edge of a cliff, and is about to be shot as Peter shows up. Peter convinces the kidnapper to let Amanda go, and carries her away to the safety of a local motel. Kyle is shocked to find them naked in bed together. Peter explains that their clothes were wet and Amanda was suffering from hypothermia. Megan ends up stowing away on the boat and stops Brett's efforts to kill Lexi. Brett blames Megan for ruining his life. Taylor gives birth to a baby boy and decides to move back to Boston. Jane and Michael get ready for parenthood and learn that Taylor has left with Michael Jr. Jane makes Michael arrange a reconciliation between Billy and an upset Jennifer. The couple decide to move to Rome together. Sam shows up in Tampa and surprises Jeff by asking him to marry her.
After Matt is killed in a car accident while on his way to dinner at Kyle's club, his mother gives Amanda a diary in which he has written secrets about his friends and neighbors. Jane is amused to discover that Michael used to work as a stripper during college. Their engagement ends up being threatened after Jane admits that she slept with an old friend, Alex Bastian, the night before their wedding. Amanda discovers from the diary that Kyle has a brother named Ryan. Amanda convinces Kyle to bury the hatchet with his brother. Amanda takes an incriminating page from the diary about herself. Beck gives the ransom money to Peter. Amanda informs Peter that the diary revealed that he performed heart surgery on Beck while he was unlicensed. Amanda shoots Peter after she mistakes him for a burglar. After Michael rejects her, Megan disappears.
Kyle is not happy about the amount of time Amanda is spending with a recovering Peter. He and Ryan argue after his brother mentions Kyle's concerns to Amanda. Amanda offers Ryan a job at her agency. Peter admits his involvement in the kidnapping to Dr. Visconti. Lexi seduces Dr. Visconti to get the truth out of him. Michael follows Megan to her parents' home, and is surprised to find that her family are wealthy. Jane takes a job at AWA.
Peter finds out that Lexi has discovered the truth about his involvement in Amanda's kidnapping. Lexi threatens to expose Peter unless he agrees to sleep with her. Amanda burns Matt's diary, including the missing page, after Kyle accuses her of protecting Peter. Ryan attempts to make a move on Megan. Michael feels jealous about Jane's new working relationship with Alex.
Lexi ends up deciding not to tell Amanda about the kidnapping because she doesn't want Peter to end up in prison. Eve Cleary is hit by a car outside the club after Kyle fires her. Peter helps her to recuperate and Amanda convinces Kyle to give Eve another chance. Amanda is not happy after Kyle continues to obsess about the missing diary page. Ryan is fired by Amanda because she thinks that he has leaked information to Lexi's agency. When he proves that her assistant was the actual spy, he is given his job back. Megan tells Ryan about her past. Michael pretends to go out of town but secretly has Jane and Alex under surveillance.
Amanda ends up being nominated for a magazine's Businesswoman of the Year award. Lexi sleeps with Drew MacKenzie in an effort to convince him to give her the honor instead. Lexi begins a rumor that Amanda won the award by sleeping with Drew after her plan fails. Megan finds out the truth after she hears a conversation between Lexi and Drew. Jane ends up telling Amanda, who manages to humiliate Lexi in her acceptance speech Jane accuses Megan of having an affair with Michael. Michael wants Jane to elope with him. Peter and Eve enjoy their first date.
Lexi decides that she can not fire Megan following her betrayal because she is her only friend. Peter sleeps with Eve but then refuses to answer her calls. Amanda goes to Peter's office to confront him and they end up becoming trapped in an elevator following a power cut. Alex threatens to take his account away unless Amanda helps him win over Jane. Megan and Ryan bond over a lost dog. Lexi shows up at the building during the blackout and Ryan sees her as she swims in the nude.
Kyle starts to become suspicious about Eve after she turns down a record deal. Peter ends up catching her in a lie about her whereabouts. Peter later asks her to move in with him. Amanda sends Jane on a business trip to Chicago, where she has to work with Alex. Peter decides to throw Michael a bachelor party. Ryan ends up sleeping with Lexi despite his brother's warnings.
Jane feels guilty about the kiss she shared with Alex and worries that she is making a massive mistake by re-marrying Michael. Amanda goes to the church to tell an upset Michael that the wedding is off. Jane ends up deciding that she does want to marry. Michael refuses to talk to her but Peter arranges a wedding ceremony at the hospital. After Alex shows up at the reception it leads Michael to think that he slept with Jane. Michael ends up getting drunk and humiliates Jane. Megan sees Ryan and Lexi in a compromising position in a bathroom. Megan ends up finding comfort with Michael.
Ryan insults Megan and gets into a fist fight with Michael following what happened on the roof. Jane burns her wedding dress on the barbecue. Amanda decides to sue Michael for the roof damages and attempts to fire Ryan and Jane. Jane decides to divorce Michael. Amanda attempts to get them to talk things out by locking them in the laundry room overnight. Megan quits her job but returns after Lexi begs for forgiveness. Peter learns that his father has passed away. Peter ends up asking Eve to marry him. Eve arranges a wedding in her hometown, then sneaks out with Amanda to go see her grandmother. Kyle follows them and manages to get the woman to reveal that Eve spent 15 years in prison. Lexi tells Peter who she feels. Amanda ends up revealing to Kyle that she and Eve once committed a murder.
Amanda and Eve tell Kyle the truth about what happened and attempt to convince him to keep their secret. Peter and Eve are married and later discover a naked Lexi waiting in their room. Peter threatens Lexi after she attempts to blackmail him about what she knows about Amanda's kidnapping. Eve suffers nightmares about Kent. Megan and Ryan take Lexi home after she gets drunk. Lexi decides to try and turn her life around. After Michael finds out about Jane's potential illness, he offers her his support.
Michael is forced to sell the beach house to pay off his debts. Michael ends up sleeping with the real estate agent. Jane and Michael remember their first date. Amanda makes plan to turn over control of her agency to Ryan. A technician's error makes Kyle believe that he is sterile. Ryan and Megan's first date ends in disaster, but they later admit their attraction and share a kiss. Lexi, Amanda and Eve organize a charity Christmas function. A former prison guard recognizes Eve when they go to a Christmas tree lot. Lexi witnesses an argument between the two and thinks that Eve is hiding something from her past.
Lexi, Amanda and Eve find themselves in the middle of a bank hold-up involving men in Santa Claus suits. The guys make plans to play Santa at some local elementary schools, but are mistaken for the bank robbers and end up being arrested. Lexi, Amanda and Eve manage to clear up the misunderstanding. Amanda is concerned about Kyle's drinking. Travis attempts to blackmail Eve into sleeping with him but Kyle comes to her rescue. Lexi has an interesting conversation with Travis, which leads to a fight with Eve. Lexi warns Peter that his current and former wives. Michael and Jane are forced by a judge to spend the holidays performing community service together. Hanson performs at a a charity concert at the club.
Musical Guests: Hanson
Kyle continues drink and take prescription pills. After arguing with with Amanda about her baby obsession, he leaves for New York without telling her. After Amanda and Ryan come to his rescue, Amanda sees women coming out of his room and thinks that he is cheating on her. She ends up throwing him out of the apartment. Lexi gives up on Peter and ends up offering to make Megan a partner in her company if she can help find her the perfect partner. Jane and Michael call off the divorce. A patient offers Michael an opportunity at a million-dollar investment.
Eve and Ryan attempt to get Kyle and Amanda back together. Kyle tells Amanda that her expectations have destroyed him. Ryan jumps to the wrong conclusion about Megan. Michael embezzles $100,000 from the children's charity fund to invest with Perry. Perry disappears with the money and learns that he has been conned. Michael attempts to cover his tracks by volunteering to serve as the charity's treasurer. Kyle gets drunk again and ends up telling Peter about Eve's murder conviction.
Peter goes to Oakhurst to investigate Eve's past. Eve shows up looking for Peter, and he defends her from the towns people's attacks. Kyle, Eve and Peter each end up accusing Amanda of being a tyrant. Amanada and Kyle end up getting back together. Megan finds the fact that a computer program named Ryan as Lexi's perfect mate. Ryan confronts Megan with his suspicions. Peter suspends Michael.
Kyle and Ryan's father, Mack, pays a visit. Mack infuriates Ryan with his demeaning comments. Mack also turns on Kyle after learning that he cannot have children.Kyle attacks his father after he belittles him and reveals his condition to Ryan. Amanda repairs her relationships with Eve and Peter. Lexi jumps to some conclusions after seeing Amanda and Peter at a hotel while Eve is out of town for a gig. Audrey decides to sue Michael for sexual harassment. Jane ends up shunning Michael after a surprising meeting with Audrey. Michael and Audrey are involved in a secret rendezvous. Lexi finds out that Ryan is her perfect mate.
Kyle ends up in a drug-induced rage and burns down his and Amanda's dream house. After informing Amanda that he is sterile he disappears. Ryan discovers him drinking at the basketball courts and takes him home. Kyle injures himself while Amanda is out and Peter thinks that he should check himself into a rehab center. Peter rescuses Amanda after she gets herself into a dangerous situation. Audrey's sexual harassment allegations are revealed a s being part of a scam engineered by Michael. Audrey refuses to follow through with the plan though until Michael agrees to a sexual relationship. Audrey then secretly videotapes their encounters. Lexi follows Jane and Ryan to a Mexican resort, where they are trying to land an account.
Eve feels jealous about the amount of time Peter is spending with Amanda. Ryan ends up sees Peter and Amanda in an embrace and lfinds out about their supposed hotel rendezvous from Lexi. Amanda informs Peter that she is pregnant. After Eve hears them talking, she races to the rehab clinic to tell Kyle. Kyle leaves rehab and goes ballistic, destroying everything in sight and attempts to kill Peter. After Amanda attempts to stop him, he accidentally throws her through a second-story window. Michael receives a two-million-dollar settlement from the hospital. After he insults Audrey on television,she decides to send her illicit videos to Peter. Ryan and Lexiwork together on an ad campaign. After they hold a drinking contest to determine who will use it, they have sex in a closet, and miss their deadline.
Amanda ends up losing the baby that she was carrying. Kyle refuses to accept the fact that the child was his. Eve disappears and her parole officer warns Peter that she could be arrested unless she shows up. Eve stays on the boat of her former cellmate, Jackie. Jackie tips off Peter, who convinces Eve to return home. Kyle decides to go to Boston. Peter learns that Kyle is not really sterile. Peter gets Amanda to the airport so that she can stop Kyle from leaving. Peter and Jane see the tapes of Michael with Audrey. Jane ends things with Michael and purchases the beach house with a loan from her father. Lexi discovers that Ryan has been engaged three times and attempts to convince Megan to propose to him so that she can expose Ryan's fear of commitment.
Kyle and Amanda attempt to speed up the construction on their house. Amanda does not have the funds to bring the apartment building up to code and decides to sell it. Kyle joins the construction crew for the house and also offers to help Jane repair the beach house.The hospital's new corporate ownership attempt to stop Michael and Peter from treating uninsured patients. Jackie is assaulted by her boss. Dr. Shulman vows to use Eve's past to destroy Peter's reputation. Jackie holds Dr. Shulman at gunpoint, but Peter stops her from killing her. Michael starts to pursue Megan. Lexi continues to attempt to convince Megan into popping the question to Ryan, but he beats her to it. Ryan secretly goes to a boarding house in Poughkeepsie to see his young daughter, Sarah.
Ryan spends time with his daughter; but Terry O'Brien, her legal guardian, does not allow them much time together. Ryan returns home where he ends up telling Megan that he slept with Lexi in Mexico. He attempts to push her away and also alienates Lexi with his odd behavior. Megan confronts Lexi and ends up quitting her job. Michael agrees to team up with Lexi after his efforts to win back Megan fails. Ryan disappears for a few days before his brother finds him at the blacktop courts. Ryan admits that he was married as an 18-year-old and that his family were involved in a car accident. He continues that he managed to pull his daughter to safety, but the car erupted in flames and killed his wife. The parole board make plans to send Eve back to prison but Amanda comes to her rescue. Peter and Eve fly to Texas to consider a bid on his father's old land. After returning home, he attempts to defend himself against Dr. Shulman's attacks, but ends up quitting. Eve learns that oil was found on Mr. Howell's property, and leases it to an oil company for millions. Peter ends up deciding to stay at the hospital to protect the interests of patients and staff. Amanda neglects Kyle to spend after spending too much time at the office. Kyle and Jane share a candlelight dinner during a power cut.
Lexi ends up purchasing the apartment building, using a cover so that Amanda will accept her offer. Amanda and Kyle move in with Jane temporarily following the takeover. Michael and Lexi drug Ryan, then look around his apartment and find information about his trip to New York. Pretending to be a priest and nun, they manage to meet meet Sarah. Lexi, pretending to be Megan, convinces Sarah to give Ryan permission to get married again. Megan goes to work at AWA and steals some of Lexi's clients. After Ryan goes to Megan's apartment to tell him about Sarah, he finds a naked Michael hiding in the closet. Peter and Eve agree not to spend their money, but she accepts an offer to purchase half of Kyle's club. Eve ends up slapping Dr. Shulman after she continues to make trouble at the hospital. Peter purchases the hospital and puts some more patient-friendly policies into place. Jane sleeps with a prospective client. Jane finds an ally in Kyle after clashing with Amanda.
Michael and Ryan fight and and Megan ends up hitting Ryan over the head with a lamp. Lexi tends to Ryan's wounds and convinces him to sleep with her. Megan learns the truth about Ryan having a daughter. Sarah hears Terry threatening to keep her away from Ryan forever. Ryan decides that he wants Sarah to live with him. He and Lexi attempt top pay her a visit but find out that she has run away. Sarah shows up on Megan's doorstep. Amanda attempts to land the account of millionaire Tony Marlin. After Eve joins Amanda and Tony for an evening out, some drunken college guys trash the club. Tony reveals that he will only sign with AWA if Amanda helps him get Eve. Kyle and Jane nearly share a kiss. Dr. Shulman stops interfering with hospital business after she and Dr. Visconti end up falling for one another.
Ryan finds out about Sarah's whereabouts and sends her to the beach house to stay with Kyle. Lexi attempts to win Sarah's favor. Ryan is encouraged by Sarah to sort things out with Megan. Michael and Lexi end up having sex in the laundry room. Amanda makes Eve the spokesperson for the cruise line in an effort to keep Tony on side. Peter is furious because the commercial conflicts with their Hawaiian holiday. Eve asks Peter to come along on the cruise in an effort to keep him on side. Amanda is forced to fire half of her staff to finance the commercial. After Kyle learns that Jane is among the casualties, he accuses Amanda of being heartless and threatens to end their marriage. Amanda ends up walking out on Kyle.
Amanda is instructed by Tony to distract Peter so that he can make a move on Eve. Amanda goes with Peter on a day trip to an island and makes sure that they miss the boat back. Tony tells Eve that Amanda promised her to him as part of their deal. Peter and Amanda end up sleeping together and confess how they really feel. Lexi decides to seduce Tony so that she can steal his account.Lexi destroys a film from Amanda's commercial before making a move on Tony. Terry has a social worker take Sarah away from Ryan. Terry ends up deciding to allows Ryan to have custody of Sarah, but will stay with them for the summer. Thing move quickly between Jane and Ryan.
Amanda ends up losing Tony's account after the commercial footage is destroyed and decides to close down her agency. Peter decides to end his marriage so that he can be with Amanda. Jane and Kyle come close to breaking up because of his insistence on being there for Amanda. Kyle sees Amanda and Peter sharing a hotel room and Eve finds out. Eve sleeps with Travis, the ex-prison guard who harassed her, but he refuses to help her. After becoming crazy, she plots revenge against everybody. A jealous Michael attempts to stop Lexi from sleeping with Tony. Terry thinks about Ryan, who is oblivious to her advances. Ryan asks Megan to marry him after telling Terry he is not interested in her.
Lexi is concerned that the police will accuse her of killing Tony and forging his signature. Michael attempts help her evade suspicion by returning the body to Tony's mansion. Michael asks Lexi to become his wife. Lexi makes friends with Eve in an effort to gather the dirt on Amanda. Eve has some flashbacks about her high school days and remembers that Amanda and Kent used to be lovers. Dr. Visconti puts her under hypnosis to trigger more memories. After Lexi takes Eve to the murder site, she realizes that Kent did not die from his fall and that Amanda beat him to death and tricked her into taking the blame. Megan sees a naked Terry kissing Ryan. Ryan and Megan end up getting married after Terry says that she tricked Ryan and she pretends to leave town. Terry kidnaps Sarah and ends up crashing her car. Jane learns that she is pregnant, but she decides not to tell Kyle.
Sarah and Terry manage to escape any serious injury because of the airbags and Kyle and Ryan pull them to safety. Terry says sorry and tells Ryan and Megan that they can raise Sarah. Amanda informs Peter that she killed Kent, but insists that it was self defense. Lexi wants to go to the police with Eve's revelations about Amanda. In in effort to stop her, Eve hits Lexi over the head and leaves her bound and gagged in the bathtub. She then reveals that she intends to murder Amanda and Peter. Eve attempts to deflect suspicion away from herself by pretending that she is over Peter and that her memories were just fantasies.