Karen walks into the lounge room and asks Patricia, "Now, are you ready to talk or not?" Patricia retorts that she doesn't think there's anything to talk about - the company doesn't need Karen's money. Karen, though, tells her that it needs more than her money - it needs her; Gordon is hardly well enough to run it, and that's what it needs most: to be run efficiently; she can't think of anyone better to do it. Patricia retorts that she thinks she's perfectly capable of doing everything necessary. Karen tells her that she'd do it better. She adds that they have to agree that her record is a little more impressive than Patricia's - and she doesn't let personal matters interfere with her business dealings. Patricia, looking bemused, asks what that's supposed to mean. Karen explains that if she was dumped by a lover, she wouldn't dash out and invest in a company in order to cover her inadequacies. Looking shocked, Patricia warns, "Now just a minute--" Karen ignores her, though, and goes on that there was a man called Matt Kennedy, she believes, who's left Patricia for dead, and Patricia has decided to throw herself into work to try and forget him; is that close to the mark? Looking furious, Patricia asks her who the hell she's been talking to. Karen ignores this again, and continues that she's not interested in Patricia's personal life - her only concern is for the company - and quite frankly, she doesn't think Patricia's reasons for wanting to be involved are the right ones. She adds that if Patricia only wants to look after her investments, she should advise the other Directors to accept her offer and let her get on with the job. Having listened to this, Patricia storms over to the front door and opens it. She then orders Karen to get out. Karen walks over to it slowly. As she does so, Patricia angrily tells her that there's no way Gordon would have somebody like her running the company, and she'll make damn sure he doesn't. Karen muses, "Best of luck," and she goes. Patricia shuts the door, looking annoyed.

At the Palmers', Beryl walks into the lounge room, followed by Karen. Karen says she thought she should explain the personal involvement she'd like to have in the company. Beryl invites her to sit down, and she does so. Beryl then explains that she does like to discuss any of the company business with Gordon. Karen replies that of course she does - but as she said, as she was in Melbourne, she thought she'd take the chance to have a chat with the other Directors. Beryl asks her if she'd like to stay for some lunch, but Karen replies that she can't, as the main reason she's down there is to attend a luncheon in aid of the Brinkley Home for Children. Looking surprised, Beryl asks her if she's interested in charity. Karen explains that she does her bit. She then adds that she gathers from Beryl's reaction that she's involved herself. Beryl replies that it takes up most of her time. Karen tells her that it seems they might have something in common, and she adds that she hopes they might get the chance to work together. She then goes on that, who knows: if they get the company back on its feet, they might be able to set up a sponsorship or clinic or home or something. Beryl smiles and exclaims that that's a wonderful idea! Karen smiles back and says she must say it's nice to talk to a real human being after her experience this morning. Beryl queries, "Oh?" Karen explains that she called on Patricia Morrell to explain what she had in mind, and Patricia didn't even allow her the courtesy of listening. Beryl grimly says she can imagine. Karen goes on that she was beginning to think getting mixed up with the company wasn't such a good idea, but Beryl has managed to swing her around again. Beryl tells her that she can assure her that Patricia Morrell is the exception when it comes to the other people in the company. Karen says she's very glad to hear it.

Patricia is on the 'phone in the lounge room at Toorak, talking to Gordon, and she tells him that Karen is a conniving, interfering, pushy, self-centred, evil woman. She adds that Barbara was right: for everybody's sake, they've got to get rid of her. Gordon, who's standing at the bar in the lounge room at Dural, tells her to stop being hysterical. Patricia snaps that she's not being hysterical - she's just trying to get it through his thick skull that the woman is dangerous; he's got to make sure that Beryl agrees to take her offer. Gordon impatiently retorts that Beryl will talk to him and then she'll decide for herself - and so far, Patricia isn't giving him one reason why Karen shouldn't be their choice. Patricia asks him if he hasn't been listening. Gordon replies that all he's heard is a stream of constant personal abuse - and he's not going to listen to her any more; if she can come with some solid business reasons why Karen shouldn't be their choice, call him back. He slams the 'phone down. Looking worried, Barbara, who's standing next to him, tells him to calm down. Gordon assures her that he's alright. He then asks her what on earth she's been saying. Barbara replies that she just told Patricia what she thought about Karen, that's all. Gordon tells her that she should have known how neurotic Patricia is. Barbara tells him that she was quite reasonable for once. Gordon retorts that that's because she was agreeing with her; she certainly wasn't reasonable on the 'phone just now. Barbara points out that it's quite possible that Karen might have upset Patricia. Wayne, who's sitting on the couch, chips in that he hardly thinks she's likely to do that - business comes first with Karen; she's not about to upset any of the Directors of the company she's about to buy into. Gordon tells Barbara that, for himself, there's no doubt in his mind over which offer to recommend taking: can she imagine what it would be like if Patricia had a major say? He leaves the room. Barbara glares at Wayne, who smiles back at her, gleefully.

Jill carries a tray of coffee things into the lounge room at Toorak. Patricia is standing in the room, looking thoughtful. David comes downstairs and Jill offers him some coffee, but he tells her that he's going for a bit of a walk, and he heads out. When he's gone, Jill asks Patricia if she's noticed how he's been since he got back from his trip - he's not with it. Patricia doesn't respond, though. Jill starts to pour the coffee, saying as she does so that she doesn't know whether Patricia has thought about Robin or not any more, but she thought she could at least keep the treatment going until she sees how he responds to it. She adds that she knows how upset Patricia was about Matt, and that she didn't really want to think about Robin at the time, but now that she's calmed down a bit... Patricia suddenly turns and glares at her. Jill asks what's wrong. Patricia sharply tells her that she's the only one who knows about Matt - that's how Karen Fox found out. Looking surprised, Jill asks, "Who's Karen Fox?" She then adds that the only person she mentioned it to was Wayne when he rang - but she was just upset about her decision about Robin; she didn't say too much to him because she knew what Patricia would think if she found out. Patricia ignores this, though, and just states, "You used it to get back at me." Jill asks, "What?" Patricia suddenly snaps that that's it, and she orders Jill to pack her bags and get out. She adds that things are bad enough without having somebody in the house she can't trust. Jill, looking shocked, says she doesn't know what Patricia is talking about. Patricia angrily tells her to just pack her bags and get out. Jill puts down the coffee things and walks out.

David is in the lounge room at the Palmer house, with Beryl, and he tells her that he's been doing a hell of a lot of thinking lately: the divorce is due to go through pretty soon, and it suddenly seems so final - and he's decided that he doesn't want to go through with it. A look of surprise crosses Beryl's face. David goes on that he knows he should have talked to her before, but with Pat coming back, he started feeling responsible again, and he did promise Margaret. He then clarifies that, what he's trying to say is that Pat seems OK now - and he doesn't want him and Beryl to be divorced. He asks Beryl whether, if he tried to get mixed up in things like her - tried to give more - does she reckon there's a chance? Can they give it a go? A smile crossing her face, Beryl asks him if he knows that that's the first time he's said he'll come halfway; does he mean it? David replies that of course he does. Beryl tells him that she thinks they could give it a go, then. David smiles at her, happily, and he replies that she doesn't know how good it is to hear her say that. He then adds that he'll go and get his bags and he'll be back by dinner time. Beryl says that's fine by her! David tells her that he's never felt so nervous before in his life. Beryl asks, "What about when you proposed to me?" David replies, "Not even then!" He kisses her!

In Ararat, Terry and Katie are walking up some steps in the grounds at the prison; a guard walks just behind them. Katie tells Terry that their time will be up soon. Terry says he knows. He then adds that he hopes she understands what he was saying: he thinks it just wouldn't work out between them. Katie tells him that she'd still like them to be friends. Terry agrees that he would, too. Katie then says she wishes he'd tell her what's going on. She puts a hand on his arm, but the guard immediately calls out that she's not to touch him. Katie mutters to Terry that this guard is worse than the other one, and she asks him if they're always this bad with visitors. Terry explains that it's not her they're not having a go at - it's him - and it's not just the guards, it's the other prisoners, too. Looking shocked, Katie asks what they've done. Terry replies that they're making things as hard as they can for him - that's how he really got the black eye. Katie asks him if he can't report them to the people in charge, but Terry tells her that it would make it worse for the other prisoners. He adds that they're not all like the guard, but it only takes a few. Katie asks him why they're doing it. Terry explains that he's in there for kidnapping and they don't like it; anyone who's got anything to do with kids, they just don't like. Katie suggests that he tell them how it happened. Terry replies that he did, but they didn't want to know. Katie asks him why Jill doesn't visit with Fee, as she's sure that would help. Terry tells her that he knows Jill promised that day in court... but he guesses it was just because of the way she felt then. Katie tells him to get in touch with her, but Terry says he doesn't think so. He then asks Katie not to tell Fiona how he got the black eye, as he told her he slipped in the shower, too. Katie assures him that of course she won't. The guard suddenly calls that time's up, and he walks up to them. Terry thanks Katie for coming and tells her that it was real good to see her. Katie says she'll come back tomorrow, adding that she and Luke are staying in a motel near Fiona. Terry tells her that he'll see her tomorrow, and she walks off. As she goes, the guard watches her with a smirk on his face, and he comments to Terry that he likes them young, doesn't he. Terry snaps, "Shut your filthy mouth." The guard warns him to watch his temper, or it could get him in a lot of trouble...

Luke is sitting on the bonnet of the car, outside the prison gate, when Katie comes out. He asks her if she's alright, but she just snaps that she's fine. Luke tells her that he knew he shouldn't have let her go in by herself, but Katie assures him that she's alright. She then goes on more sadly that it's Terry: he said he's not interested in her, anymore; she doesn't believe him, though - things will be different when he gets out of jail. She adds that, what really worries her is that the other prisoners have been giving him a rough time, and with his temper, he might blow up; she's scared he might try to do something stupid like break out...

Jill is standing in the hallway at Toorak with David; her packed bags are resting on the floor and she's holding Fee. She tells David that the taxi should be there any minute. David tells her to hold her horses and he'll have a talk to Pat, but Jill replies that he hasn't got a hope - she's right back to the way she used to be. David asks her where she's going. She tells him that she's going back to Sydney - she'll get a job and a room... at least she'll be near Robin. David says that, if she's sure... He then adds that she'll need more than the money she's got, and he takes a wad of notes out of his pocket. Jill tries to refuse, but David insists, and so Jill accepts and tells him that she'll pay him back when she can. David tells her to look up Irene when she arrives - she'll find a room for her and she'll be a friend. Jill, though, says she doesn't think so: Fiona will be arriving there any day now, and it wouldn't work out; she'll give Irene a ring anyway, but she thinks she'd be better off on her own. David tells her to at least let him drive her to the airport. The taxi horn suddenly sounds outside, though, and Jill assures him that she'll be fine - really. She goes.

Patricia is sitting in the lounge room, staring into space and looking upset. She listens as the taxi drives off and as the front door then shuts as David comes back inside. The lounge room door then opens and David walks in. He angrily tells her that he's had enough of her - turning that girl out... what does she think she's playing at? He goes on that she can do without him, too - he's moving back in with Beryl tonight; they've been able to sort things out. Patricia suddenly bursts into tears, but David snaps at her to come on, as she's not going to pull that one on him. Patricia sobs that she's not trying to pull anything - she's sorry: what she did to Jill was wrong - she knows that - but she just felt so betrayed. She cries to David that apart from him, Jill was the only person she could trust, and now she's going and he's going and she won't have anybody. She cries, "Please stay with me... Please..."

Later, that evening, David is at the Palmers', and Beryl snaps that surely he's not falling for that old trick. David insists that it isn't a trick - Patricia is a real mess; he knows when she's conning him. Beryl asks how many times she's heard that; she simply doesn't believe it. David points out that he told her about Margaret's letter. Beryl tells him that Patricia plays on him. David assures her that he'd rather be there with her. Beryl snaps, "Sure." David insists that he would - it's just that he thinks he should stay with Patricia a while longer, that's all. Beryl suggests that perhaps the whole idea of him coming back there was a big mistake in the first place; he just got carried away. David says he has to go; he's sorry - he really is. He kisses her. Beryl tells him that it's a good thing she didn't start dinner... David assures her that he really does want to come back. He goes. Beryl stands in the middle of the lounge room floor, arms crossed and a look of annoyance on her face. She then turns and looks at the telephone, walks over to it and starts dialling.

A short time later, Beryl is telling Gordon that she thinks the best way to go would be to accept Karen's offer. Gordon asks her if she's sure she's given it enough thought. Beryl replies, "Absolutely." She adds that she met Karen, and she thinks they'd be crazy to go with Patricia. Gordon suspiciously asks if something has happened with Patricia. Beryl suggests that they just say that she's as bad as she ever was and she thinks they should have as little to do with her as possible. Gordon tells her, "Very well - I'll keep in touch." They say their goodbyes and hang up. At Dural, Gordon comments that Beryl has certainly made her mind up - he can't imagine what Patricia has done to her. Wayne asks who cares. He suggests that they just get Patricia up there and lay it on the line: tell her that they're not interested in her money, and if she doesn't like it, she can get out. Gordon muses that he thinks they can phrase it a little more tactfully! He then adds that a meeting in the morning might actually be a very good idea - they can sort the whole thing out as quickly as possible. Wayne asks what time they should make it: 10am? Gordon points out that that's a bit early for a Sunday. Wayne reminds him that it's important, and so Gordon agrees that 10am it is.

The next morning, Wayne opens the front door to Karen and tells her that he's glad she could make it. He adds that Patricia has just arrived from the airport, but she's not to worry as everything is going her way. Karen snaps that it had better be. Wayne goes on that Barbara is in on the meeting too, because of the money she put into the riding school. Karen snaps that she'll be a great help. Gordon come out of the lounge room - closing the doors behind him - and tells Karen that he thought he heard her voice. He then asks her if she minds waiting in the study, as they'd like to discuss both offers before they make a decision. Karen replies that that's fine - although she wouldn't mind freshening up a bit first. Gordon tells her that the bathroom is upstairs, to the right, ad she goes. Gordon and Wayne head into the lounge room to join Barbara and Patricia. Gordon tells them that they all know why they're there - it's just a matter of coming to a decision. The two men sit down. Patricia leans forward and says it's obvious that she thinks they'd be far better off accepting her offer. Looking at Gordon, she goes on that she must apologise for that telephone call, but she had rather an upsetting visit from Karen Fox and rather stupidly allowed it to get to her. She continues that she thinks they ought to know that Karen managed to get some personal information about her which she tried to use against her; the only way this could have happened is through Wayne. She looks at him sharply and adds that she's sure that that's exactly what he wanted: he wants Karen to win because he's going to get something out of it for himself - although God knows what it is. Gordon tells her that they're not impressed with that sort of comment: for her information, Wayne has done a magnificent job attempting to keep the company going. Wayne smiles at Patricia, smugly. Gordon adds that he's very proud of the way his son has handled things. He goes on that he's afraid Patricia hasn't been able to supply them with one single tangible business reason why they shouldn't accept Karen's offer. He tells her that he knows she can supply the money, but Karen has the added advantage of being able to supply them with her experience. Patricia angrily asks if he can't see what they're letting themselves in for. Gordon just retorts that he can't see the point of discussing it any further: he and Wayne discussed it last night and Beryl rang through with her decision in favour of Karen... he's afraid Patricia is outvoted. Patricia glares at them them all and then snaps, "I see." She angrily adds, "Let me tell you: I have absolutely no intention of working with Karen Fox, let alone taking orders from her." She goes on that she thinks they're all going to be very sorry when Karen is in control; as for her, she resigns. She stands up and goes to walk out. As she does so, she turns to Barbara and comments, "Should have listened to you for once!" She goes. Wayne immediately says he'll try and talk some sense into her. Gordon gets up as well, but Barbara tells him to let Wayne handle it.

A short time later, Patricia comes out of the study as Karen comes downstairs. Karen says to her that she can see what the result is - she looks forward to working with Patricia. Patricia, though, retorts that she'll have a long wait because she's pulling out of the company. She then adds that Karen's not to think this is the last she's seen of her. Karen says she's sure it isn't. Patricia goes on that Karen had better start looking for money to buy her out - and who knows: she might use it to set up some competition. She adds that she does actually know a fair bit about the way the company is run - enough to set up a fairly healthy opposition. She warns Karen to think about that, and she goes. Karen tells Wayne, who overheard that, not to look so worried - Patricia did exactly as she thought she would. She adds that of course she'll buy Patricia's share - it will make Gordon stronger. Wayne says he hopes she knows what she's doing, as she shouldn't underestimate Patricia. Karen retorts that she hasn't - but she's a survivor, too. Wayne tells her that he can guarantee they haven't seen the last of that lady...

Terry is walking along the path at the prison with a guard, who asks him if he's looking forward to meeting his little girlfriend again. Terry tells him that he won't bait him. The guard replies that he won't need to. Terry looks surprised as Luke suddenly comes into view ahead of them, and he walks towards him and asks him what he's doing there. Luke explains that Katie went shopping with Fiona, so he thought he'd take the opportunity see Terry himself. Terry asks him what he wants. Luke explains that it's Katie: he thinks he and Terry have a lot to talk about...

In the lounge room at Dural, Wayne tells Karen that one good thing is that he'll be able to drop the escort nonsense before his dad has a chance of finding out about it. Karen tells him that he mustn't knock it, and Wayne agrees, "True." There's suddenly a knock at the front door, and Wayne goes and answers it. He looks surprised to find Jill standing on the step. He asks her what she's doing there and she explains that she's come to see Gordon and Barbara. Wayne tells her that he meant: what's she doing in Sydney?; where's Fee? Jill explains that she left her with Irene Fisher - and she's in Sydney because Patricia kicked her out. Wayne, looking shocked, says, "What?" Jill goes on that he can take the blame for it: he opened his big mouth and blabbed about Matt Kennedy dumping her; he told that woman who wants to buy into the company, and it didn't take Patricia very long to work out who gave her the story, so she kicked her out. Wayne asks how he was supposed to know she'd go off the deep end. He then adds that, anyway, if she's carrying on like that, Jill is better off without her. He tells her that she can stay there at Dural, in the flat, but Jill retorts that she doesn't want anything from him; she's got a reference from Stephen from when she worked for him and she'll get a job and a room. Barbara suddenly comes into the hallway and says she thought she heard voices. She gives Jill a hug and Jill asks her how Gordon is. Barbara tells her to come and see for herself. She then asks Jill what she's doing there, and Jill explains that she's moved up there, and she thought the first people she should come and see is them. Barbara smiles and says, "How nice." The two of them walk off and Wayne heads into the lounge room, where Karen is sitting on the couch. He asks her if she heard any of that. Karen replies that she heard most of it, but it's none of their business. Wayne, though, tells her that it's their fault she's in a mess - they've got to do something to help. Karen says she doesn't see why. Wayne points out that she's been looking for a personal assistant, hasn't she? Karen, picking up on what he's implying, retorts that she doesn't know Jill from Adam; she's a businesswoman, not one of Beryl Palmer's charity organisations. Wayne tells her that Jill did a damn good job up at Woombai - and it's nothing to do with her being a friend. Karen snaps that she's heard that before. Wayne retorts that he's serious - and it's not as if she's creating a job for her. Karen admits that she's already interviewed a few girls and they weren't any good, so there's no reason why she shouldn't give Jill the job.

A short time later, Jill walks into the lounge room and sits down. Wayne says to her that he's told Karen what happened and they were worried because they feel responsible; they'd like to make amends. He tells her that Karen has been looking for a personal assistant, and he recommended her. Karen chips in that it would only be a trial period: they'd see how it went; if things didn't work out... Jill asks if that would apply from both sides. Karen assures her that of course it would. Jill comments that beggars can't be choosers, so she accepts!

At the prison in Ararat, Terry tells Luke that he didn't want to let Katie know what was going on there, but she just kept pestering him. Luke retorts that he still should have known better. Terry admits, "Alright." Luke goes on that if he had really cared about Katie, he would have refused to see her; he would have let her work him out of her system. Terry curtly assures him that he's made his point. He then continues that he doesn't know why Luke is so interested anyway - he's going out with Jill, isn't he? He then adds that he supposes that's why Jill hasn't been to see him. Luke explains that, actually, he hasn't seen Jill since the trial. Terry muses, "I see..." He goes on that he supposes Luke couldn't handle what came out about her. Luke retorts, "After what you did to her, you can hardly talk, 'mate'." Looking furious, Terry growls, "You mongrel!" He then suddenly lashes out and punches Luke in the mouth. Luke drops to the ground. Two guards immediately run over and grab Terry. One of them smiles in delight and tells him, "Well, Hansen, I hope you enjoyed that. It's gonna have to last you for quite a while..."