Karen's kidnapper, Phil Harbert, brings her to a guestroom in his home. He's laden it with food and new clothes for Karen, telling her he wants her to be comfortable. He tells Karen she hasn't been kidnapped, she's just disappeared. Greg uses the cleanup of Empire Valley as publicity for Peter. Greg tells him that he won't really clean it up until Lotus Point goes bankrupt. Peter tells Jill, who tells Gary.Val is overjoyed when Ben comes home. Later Ben receives a note from his old friend Jean Hackney to meet her. He goes to her boutique, which is a cover from underground activities. She asks him to spy on Greg, and kisses him. He tells her he no longer can do either activity. Flashback Scene: Young Mac, Greg and Phil go to the Matheson's, only to find out they've gone to their summer residence. Mac is upset because he didn't get to say goodbye to Anne.

Ben gives Abby his resignation. Greg tells him his job is to keep Peter's nose clean. Peter tells Ben that he is not Greg's puppet. Jean's lover asks her what Ben will do if he finds that she is no longer with the CIA. Michael is jealous when he sees Paige fawning over Peter at the Lotus Point Christmas Party and at the mall. He blames Karen. Abby shows up at Peter's nude under a Fur Coat. Karen leaves a message for Paige's grandparents, the Winstons. When Karen tells Paige, she flips out and says her grandparents hate her because they hated Mac. Mr. Winston calls Karen and says that she's sick, because Paige is dead. Laura tells Greg she is pregnant, and he's not happy. Olivia buys some drugs, and then Abby and Gary give her a sports car for Christmas. Olivia takes Lilimae for a ride, and they get into an accident.

Gary goes to Jill's to get her some clothes. He sees her yearbook where her name is Dorothy Simpkins, and pictures of Peter that are signed ""for my sis."" Home, Jill asks Gary to marry her, but he says he needs to get to know her better. Lilimae gives Abby a packet of cocaine she found in Olivia's car. Abby searches Olivia's room as Olivia is in the barn snorting coke. Abby follows Olivia and sees her buying drugs. Abby grabs her purse and dumps out the drugs. Greg wants Laura to have an abortion. Paige tells Mac and Karen that she faked her death to get away from her grandparents. They are not sure if they believe her. Karen researches and finds an obituary saying Paige died in a boating accident. Mac decides to call the Winston's, and Mr. Winston tells him to stop calling because it upsets Anne. Mac is surprised to hear that Anne is alive.

Mac flies to New York to see Anne. Under house arrest, Olivia sneaks out and does drugs in the barn. Olivia locks herself in the bathroom, so Abby chops the door down and finds drugs which Olivia tried to flush. Olivia makes calls, and tells Brian that her friends will bring her homework to his school. Abby catches Olivia stealing money from her purse, and they fight. Olivia trashes Abby's room, and Abby has to restrain her. Olivia gives Brian an envelope and tells him it's her homework to give to her friends. Lilimae brings Brian to school, but comes back with Olivia's ""homework"". It is actually money. Upset, Olivia says she had to give it to Brian, or her friends would beat him up. Abby rushes to Brian's school, but he's already been beaten up. Abby brings him home and forces Olivia to face her bruised and bloodied brother. Upset, Olivia runs to the chicken coop and gives Abby all of her drugs.