Gary tells Karen that Mac won't be grateful that she spared him his death, he'll be angry and resentful. Abby hires Scott Easton. Greg tells Abby he knows that one of her employee's broke into Caufield's medical files. Abby threatens to retract her statement if he tells. Lotus Point has their grand opening. Mac and Karen begin to talk at the opening. Joshua tells Cathy that he met Abby and she is really 'nice'. Greg invites Caufield to the opening, and tells the press that his medical history doesn't matter. At the station, Abby sees a floppy disc on Ben's desk that is labeled ""Val Notes"". She puts it in the computer. It's a love letter to Val that he loves her, but just can't get over the fact that she is having Gary's baby. Abby is shocked.

Val asks Mac to be her birthing coach, and Gary tells her he wishes she would have asked him. Val and Gary try to get Karen and Mac back together, but Abby's worried that Val will tell Gary about the babies. Abby asks Scott Easton if the babies can be heirs and complains about them, but says there's nothing she can do about it. Easton replies, ""You never know..."" Abby hires Joshua to work at the cable station. Gary tries to use reverse psychology on Karen and tells her to divorce Mac, but to his surprise, Karen agrees and goes to see a divorce lawyer. Cathy has a romantic dinner with Joshua. Ben gives Mac a tape about Gary Loader, who was in prison with Tom Jessick. Greg wins his election to become Senator. He gives his acceptance speech. Afterwards, Jane tells him that she wants a divorce.

Mac is served with divorce papers. Karen says she wants to explain but she will need time. Mac finds out that Gary Loader has been killed. Val and Gary feel responsible for the MacKenzies' divorce. Abby and Scott Easton watch them talking from her office. Joshua's father, Jonathan, comes to Knots Landing determined to bring Joshua home with him. Joshua tells Cathy how confused he is and they make love. Afterwards, Joshua feels dirty and disgusted, and is horrified that Cathy doesn't feel ashamed too. Joshua goes to see Reverend Kathryn, who has a religious show on the station, for advice. Joshua decides to stay and talks with his father. Scott Easton has lunch with Mitch Ackerman. Val goes to see her obstetrician, but she has been called away to a conference, and there is a new doctor - Mitch Ackerman. After Val's appointment, Ackerman calls Easton and tells him that he gave Val the pills, and that it will be 2 or 3 days at the most.

Karen and Mac talk but she doesn't tell him she's dying. Scott Easton calls Abby and says he has negotiated Lotus Point's water rights with Paul Galveston, and to expect a bonus within the next few days as a ""thank you"". Ben is away on a story. Val has pains all day, and Dr. Ackerman tells her to take more pills. Home alone, she goes into labor. Michael and Eric take her to the hospital. They call Gary, who immediately leaves, angering Abby. Ackerman tells Val he's going to put her under anesthesia. She protests but he says there are complications. Everything goes fuzzy for Val. She gives birth, sees the babies, and hears them cry. She hears the nurse say that the babies are healthy. Val wakes up, and Ackerman tells her that the babies were stillborn. Val insists that she saw and heard them, but Ackerman says her mind was playing tricks on her because she was under sedation. Gary calls Abby to tell her that the babies are dead. Abby is genuinely concerned. Then Abby receives a call fro