Peaches gets her purse stolen, Laken arrives in Hollywood, Joe & Kelly meet at the stables, Joe goes to work for Augusta.

Kelly helps Joe get out of the house, Santana brings CC a present to give to her son.

Joe kisses Kelly (replays), Jade has a screen test with a sleazy producer, Joe gets drunk and goes to Augusta's, Kelly goes to Peter's.

Morning after - Joe & Augusta wake up together, as do Peter & Kelly, Laken wants to go to Hollywood.

Joe & Santana argue at the stables, Mason & his secretary get it on in his office.

A sarcophagus arrives at the Lockridge house, Santana out cold after falling off a horse, Lionel arrives in Santa Barbara.

**First appearance of Nicolas Coster (Lionel Lockridge).

Santana gets bitten by a rattlesnake, CC rescues her and she is taken to the hospital.

Kelly and Joe dance at La Mesa, Peter arranges for the two-way mirror to be installed in the presidential suite, Jade in trouble at the movie shoot.

Peter tells Mason that Kelly has seen Joe a few times, Ted & Laken return to Santa Barbara & invite their parents to the snack bar for a meeting, Joe sends Kelly flowers with the ring.

**Last appearance of Peter Mark Richman (C.C. Capwell)