Julia lashes out at Augusta for knowing about Mason and Sasha. Mason hijacks Julia's plane and it has to do a crash landing. Cruz works it so that Nikki can live in the United States. Rafael asks Nikki to be his assistant.

Laura creates another phony blackmail letter. Mason and Julia freezing, hope to be found very soon. Ethan tells Bunny that he and Laura have been receiving threatening letters since the election. Mason asks Julia for forgiveness for his affair with Sasha. Laura witnesses Ethan proclaiming his love to Gina.

Eden comes home and CC and Sophia tell her that Mason and Julia's plane went down. Robert and Kelly check out the Tonell stables. Barr "hires" Kelly to work at the stables with Travis. Eden tells Cruz that she needs to be alone and figure out why she cannot control her own life. Julia imagines herself on trial with Sasha as the judge saying her marriage to Mason is null and void. Cruz has a happy reunion with Chip and Adriana. Julia and Mason are saved and Julia asks Mason to pack his bags. Augusta comforts Julia. Robert is furious with Eden not yet choosing between him and Cruz.

Eden tells Sophia that she is going to try and get her job back at the TV station. Raphael shows Cruz the Christmas photos of Chip and Adriana. Mason calls a family meeting at the Lair. Julia talks to Michael about her troubles. Kelly apologizes to Eden for her actions toward her. Sasha sings As Time Goes By at the Lair. Cruz drills Nikki for more info on her past. Eden tells Cruz she is going to try and get her job back at the TV station. Cruz dines out with Nikki. Mason ends up drunk and making a fool of himself. Cruz and Nikki get romantic.

Nikki and Cruz are kissing when Eden pops up on the TV screen reclaiming her old job back. Laura tries to convince Ethan to move back to Boston because of the threats. Nikki is caught at the stables. Brandon catches Laura on film. People are thinking Laura is acting strange.

Augusta tells Julia she is broke due to Tonell's money being in probate... forever. Laura tells Mack she feels the walls are closing in on her. Ethan lashes out at Laura for trying to get Mack to think Gina is blackmailing them. Mack questions Gina and Gina tells Mack that Laura is using him. Ethan finds the earring Laura planted at the Orient Express and tells Gina that Laura is trying to set Gina up. Mason goes home and Julia says she does not want to talk with him. Kelly admits to Cruz that she was working undercover at the stables for Robert. Travis holds Nikki at gunpoint at the police station after being arrested for drugging the horses. A drunken Mason sets up shop at the orient express. Ethan tells Laura he is going to divorce her.

Laura tries to convince Ethan and Michael that Gina is behind the blackmailing. Robert and Kelly start seeing eye to eye. Gina is thrilled when Ethan tells her that the divorce is going through, but not happy when Laura stops by with words of advice. Cruz recalls when he and Eden were happy in Paris.

Augusta and Julia remember their childhood and that Julia will not put Samantha through Mason's drinking. Greg talks with Sophia and CC about Mason's drinking. Gina tries talking some sense into Mason about his drinking. The Capwells stage an intervention for Mason. CC and Sophia are surprised when Sophia is offered a script from Hollywood. Mason tells Julia he is going to stop drinking.

Mason tells Cruz he is starting his campaign to win Julia back. Cruz tells Mason what he and Eden had is gone. Augusta tells Julia she wants all the Lockridge's back in Santa Barbara. Kelly is knocked out at the stable. Laura tells Mack that she is pregnant, but not for long. Ethan prevents Laura from having an abortion.

Mack gets arrested after paying Bunny with one of the 20 dollar bills that were marked that Laura put in Gina's purse. Laura tells Gina that she will not get Ethan since she is pregnant. Kelly shows up on Robert's boat. Robert gets knocked out. Gina tells Ethan to stay married to Laura. Craig tells Robert that he has been let out of jail on bail and is responsible for the drugging at the stables.

Eden arrives home from Paris and finds Nikki sitting on Cruz' lap. Sophia meets with Stephen Slade for a part in his film. Mason creates a circus for Samantha to get back into Julia's good graces. Augusta tells Julia she needs to start enjoying life. Eden tells Robert she interviewed his old friend Derek Griffin while in Paris. CC tells Eden he worries if Sophia starts acting again he may lose her. **First appearance of Richard Hatch (Stephen Slade)

Ethan releases Mack after he receives another blackmail note, while Mack was in jail. Cruz takes Nikki's glass before she goes on stage with Rafael, so that Cruz can investigate Nikki's past. Rafael finds it odd when Nikki asks to be paid in cash instead of check. Gina tells Ethan she believes Laura is behind the blackmail. Cruz lets Nikki in on the fact that he knows who she really is.

Nikki explains to Cruz why she changed her name and her past record. Ethan, Gina and Mack set Laura up and she falls into their trap. Laura begs Ethan for forgiveness and then has stomach pains. Kelly overhears Eden telling Robert why she loves Cruz. Robert tells Eden to stay out of his life.

Gina asks Ethan if he is sure Laura is really pregnant. Robert apologizes to Kelly on the way he has treated her in the past. Gina advices Ethan to have Laura tested while in the hospital and see if she is really pregnant. CC takes Julia out to lunch where Julia tells CC she cannot be controlled by him. Ric starts working for Craig. Sophia decides to do Stephen's film. Ethan has the hospital do a pregnancy test on Laura.

Augusta plans a big party with Bunny's help as Augusta's re-emergence in Santa Barbara's society. Laura fixes the blood work to show she is pregnant. Kelly and Robert make love. Julia goes to see Derek Griffin to help him with immigration paperwork. Augusta is interviewed for television and ends up scathing Augusta and edited to make Augusta look bad. Kelly and Robert have their first official date. Julia helps Derek bring the children across the border.

Stephen shows up in Santa Barbara and tells Sophia that he may do the filming there. Derek and Julia re allowed through the border. Stephen tells Sophia that he wrote the script with her in mind and Sophia accepts. Cruz continues to harass Nikki on her past. CC is the only one that shows up at Augusta's party after the disastrous interview. CC makes it clear that he is only there to buy her horse, Dark Victor.

Augusta offers to donate her horse to an auction that Derek and Eden plan on running for the children's home. Nikki tells Cruz that she is a cop and working undercover to nail Travis. Julia surprise Robert with a visit with Derrick. CC decides to have Stephen investigated. Augusta tells CC that she has donated Dark Victor for the auction. Cruz finds out that Nikki really is a cop. Eden acts cool towards Kelly, when Kelly says she and Robert are having a relationship.

Sophia tells Eden she is acting like a brat where Cruz is concerned. Kelly tells Robert she is not happy that Robert wants to keep their relationship a secret. Kelly gets information from Ric about Craig setting up illegal casino operations. Sophia goes to talk with Cruz. Eden apologizes to Sophia. CC offers Kelly position of Chief operating officer of Capwell. Kelly infuriates CC by turning down his offer and then moving out of the mansion. Ric gets Robert into Craig's office.

Julia and Derrick get thrown in jail due to Mason thinking he can get back in Julia's good graces. Cruz decides to work with Nikki to set up Travis.

Laura tries to talk Ethan into counseling. To impress Julia, Mason writes out a check for Derek's children's group. Nikki and Cruz finally break Travis down. Laura cries to Michael about her life. Nikki and Cruz arrive at the cabin that Travis tips them off to where the boss is and an avalanche hits. Julia is impressed when Mason volunteers at the children's center.

CC, Greg and Eden go looking for Cruz. While stranded Cruz see's another side of Nikki. Craig informs Sasha that she now owns his business. Robert tells Ric he is no longer needed. Julia is about to cave in with Mason, Sasha shows up to tell Mason about Craig. Eden looks into the window and sees Cruz hugging Nikki.

Derek takes Julia to the auction. Cruz feels that Eden was at the cabin, but finds no one. Eden tells CC that Cruz is fine. Craig calls Mason and Sasha for a meeting on his boat about the casino. CC outbids Robert on Dark Victor which infuriates Kelly. Eden and Cruz are reunited at the ball.

Kelly chews out Mason for being in business with Sasha. Ethan assures Gina that she will only have to wait a few months before they can be together. Laura begs Michael to dance with her to make Ethan jealous, but Michael declines. Laura lies to Michael and says Ethan refuses to divorce her. Craig plants explosives on the boat. Robert realizes what Craig is doing and they fight, Craig's henchman knocks Robert out. Eden goes to Cruz boat and finds a naked Nikki in Cruz bed.

Craig's casino blows up with only Sasha hurt from the explosion. Nikki makes Eden think there is more to her relationship with Cruz. Eden decides to take a news story in New York. Laura throws herself at Michael and he rejects her. Michael brings Laura back to the part where they find Ethan and Gina kissing. Laura admits to Ethan that she threw herself at Michael and he rejected her. Gina tells a startled Michael that Laura is pregnant. Mason visits Sasha in the hospital and Julia asks Mason why he is always scheming.

Robert asks Kelly to move in with him. Craig visits Sasha in the hospital. Mason gives Sasha a one way ticket to Paris. Sasha realizes that she has been duped by the Capwells again and tells Mason she is staying in Santa Barbara for a long time.