Exhausted, Kat and Renbe enter the deserted town. How could such a quaint town resembling 1950s-America be located just beyond San Nicasio's borders? Renbe's stunned to spy the Shanghai Palace, recognizing it from the photo he found in the Ambassador's desk. When he and Kat enter the restaurant to investigate, the workers run out the back, hop into a waiting van and speed off.
Joe's in bed when Janet knocks. He remembers her now, as well as everything else, but he doesn't want to talk about it. Something's happened, something's wrong, and they're in danger. Joe knows "they" are on the brink of taking serious action, and he was to warn the others, who just happen to be gathered in the hallway. Sadly, they're no longer interested in what Joe has to say, and the conversation is further interrupted by the appearance of Ulrich, the new hotel manager. Joe immediately recognizes Ulrich as the man he killed during his first stay at the hotel.
Because of recent events, Ulrich explains that management has found it necessary to make some modifications. Exactly what, he's not at liberty to say. Joe asks if Ulrich intends to flush the town. Ulrich maintains there's no need for concern; however, the guests will be restricted to the floor containing their rooms, which will be enclosed by metal security shields. As a token of appreciation, management has placed a complimentary gift in each of their rooms, and room service will be available 24/7.
Moira wants to know why Joe thought Ulrich was dead. Joe explains he shot Ulrich three times in the chest, and even gave him last rites. Finally, the cat's out of the bag: Joe was a Jesuit priest when he was first kidnapped. He received the same fortune as Janet - Kill your neighbor and you'll go free - but unlike Janet, he shot his neighbor, Ulrich. And flushing the town means pretty much what it sounds like: elimination.
Renbe and Kat hunker down in the sheriff's station when they see a bunch of heavily armed blue coverall guys drive up in assorted jeeps and vans to systematically search the town's buildings - and unload a stack of body bags. Back in their rooms, the hotel guests begin unwrapping their complimentary gifts. McNair receives an old brown belt; Moira a silk scarf; and Erika finds a poster of her son Anton, who's running for president of his school class. Charlie receives the front page of a financial newspaper, which indicates he's been brought up on multiple charges of embezzlement.
Bill's charmed to open his gift, an old football, along with the obituary of a beloved local coach. Charlie bursts in to tell him about his missing newspaper - it's the worst torture he's had to endure! Bill launches into a story. When he was a kid, everyone called him "Lard Ass," since he spent all his time watching TV and eating. One day, Bill's father ordered him to play football. Despite the fact that Coach Trump made his life a living hell, Bill had one triumphant game in high school, which blew out his knee forever, but earned him the winning game ball. Touched, Charlie muses that maybe Bill's not such a donut hole after all.
Janet opens up her gift box to reveal a well-worn, much beloved stuffed rabbit named Miss Winston, which bring tears to her eyes. Joe's box contains a dog-eared Bible, filled with notes and pictures. He's just studying a photo of a young woman when Ulrich barges in to explain he gave Joe the Bible to remind him of who he is. Joe wants to know if Ulrich's been sent to keep him in line. Ironic, Ulrich claims it's not all about Joe, who's no longer The Director's fair-haired boy; he's here to take Janet through the process. If Joe interferes, Ulrich won't hesitate to put a bullet between his eyes.
Peeved, Janet visits Joe, demanding to know how he got to the town in the first place. Joe explains he was taken in the middle of giving communion, but he'd lost his way long before. Actually, celibacy wasn't the root of his problem; it was obedience. And he hasn't been completely celibate... Ulrich barges in with a room service tray for Joe, containing carnitas, just like that sweet young vendadora Gabriella used to make. When Ulrich picks up the photo of the young woman from Joe's Bible to illustrate his point, Janet runs out, distraught that Joe can't be straight with her about anything.
Still hiding in the sheriff's station, Kat and Renbe spy the blue coverall guys unloading full body bags onto gurneys. When Kat laments she's going to die in a small town just like the one she grew up in, Renbe rallies. He's spent his whole life getting in trouble, and has always managed to get himself out. They're going to get out of town alive. Meanwhile, Ulrich presents Bill with a steak and potato feast. Pleased, Bill thanks Ulrich, then takes him up on his offer of assistance. It seems that Charlie needs the rest of his newspaper. Ulrich thanks Bill for bringing the matter to his attention, and promises to see what he can do.
McNair tells Moira the story of his belt: when he was young, his mother used to "educate" him with it almost every day, saying she'd beat the devil out of him. When he was 14, he grabbed the belt, beat her with it, then ran off, throwing the belt in a river. He never went home again. Ulrich responds to a call from Erika's room. She wants management to know she's one bitch that can't be bought. Ulrich counters. Anton is doing well because he's her son, not in spite of that fact. And Ulrich knows her real name is Theresa Randolph - Erika was her cellmate. But Erika shouldn't worry; he won't tell the others.
Ulrich gives Charlie the rest of the newspaper with apologies for neglecting to bring it the first time, an oversight he learned about from Bill. Charlie's clearly disturbed by the allegations in the article, claiming his company's been out to get him. Ulrich wonders if that's because the company originally belonged to Charlie's wife Charlotte's father. Indignant, Charlie swears he married Charlotte for love, and quadrupled the company's profits. Luckily, the article claims he was cleared of all misdeeds, which Ulrich explains, is all due to the largesse of The Program. Charlie thanks Ulrich and asks him to thank Bill.
Janet's shocked to find Ulrich in her room, now decorated with a '50s-era TV, a '50s-era record player playing a '50s era record, and an exquisite table, set for dinner. The TV turns on to show black-and-white video of a little girl, hiding in the closet and clutching Miss Winston while her parents argue loudly in the background. Janet collapses in a chair, unable to speak. Ulrich explains that management has had their eye on her for quite a while, believing in her even when she didn't believe in herself.
Ulrich repairs to his office for a videoconference with The Director. He's ready to proceed; all the participants have been sedated and there's an Alpha Unit standing by. In fact, every monitor displays video of each of the hotel's captives, passed out in their rooms. The Director instructs Ulrich to be expeditious; she wishes there was another way. Ulrich promises it will be fast, painless and over by tomorrow morning.
Kat and Renbe watch as blue coverall guys wheel body bags into the bank vault. When the coast is clear, Renbe dashes into the bank, giving Kat no choice but to follow. Grossed out, they start unzipping the bags, looking for Janet. That's when Kat discovers that all the corpses are missing their right thumbs. Renbe's just opening the last bag when the corpse inside reaches up, grabs his neck, and squeezes. When the corpse leaps up, they recognize Stefano, Tori's boyfriend!
Stefano explains that he followed Kat and Renbe to San Nicasio, then followed the jeeps to the town - and he's the one who's been collecting all the thumbs. How else can authorities thousands of miles away identify the bodies? Kat thinks he's a genius, but Renbe's not too sure. In the morning, Bill knocks on Charlie's door after a jog. He's not sure why, but he woke up feeling great, and decided it's time to get back into shape. Charlie promises to join in tomorrow - somehow the gunshot wound in his leg no longer hurts. Acting like old buddies, the guys head to breakfast at the Shanghai Palace.
Joe wakes up where he fell last night, half on the floor, half in bed. He rushes to Janet's room, only to find Ulrich tenderly making her bed. When Joe demands to know Janet's whereabouts, Ulrich feigns amusement. Joe's always playing the righteous hero and failing miserably, just like he did with Gabriella. And Janet's probably at breakfast with the others. At the Shanghai Palace, Janet apologizes to Erika for hitting her; she never should have chosen Joe over the rest of them. Erika smiles and invites Janet to sit with her.
Joe storms into the Shanghai Palace, demanding to know if Janet's alright. Janet acts coldly, claiming she and Erika are in the middle of a conversation. She wants to trust him, but he can't help being what he is, which is one of them, and he'll be one of them forever. When Joe insists that "they" have all of them now, Janet turns her back and resumes breakfast with Erika. Meanwhile, blue coverall guys rush into the bank. Kat, Renbe and Stefano fight them off, grab the box of thumbs, and steal a jeep. They drive out of town with the blue coverall guys in hot pursuit.
Moira and McNair sit in the gazebo. Moira's mother used to wear the silk scarf to church where her father was pastor. He always used to say how beautiful her mother was, so when he started coming to Moira's room at night, she was grateful for his attention - at first. But when she spied her mother watching them one night... in the end, Moira used the scarf to strangle them both. Crying, McNair takes her hand, telling Moira they donâ€™t have to run from their pasts anymore. Moira lets the scarf go, and cries on McNair's shoulder.
Stefano tells Renbe to slow the jeep; his car's just up ahead. Handing the box of thumbs to Kat, Stefano asks her to turn them over to the authorities and jumps out of the jeep. Within moments, he's surrounded by blue coverall guys, who taser him in the throat. Meanwhile, Ulrich calls to Janet as she crosses the lobby. There's a phone call for her. Janet picks up the phone to hear her mother's voice. She explains that she's been kidnapped, and yes, Eleanor should call the police and the FBI.
Eleanor tells Janet that she has Megan, who's safe and sound, then apologizes for all the horrible things she's done over the years. She loves Janet and misses her very much. Janet hangs up, mystified, telling Ulrich that the call went a little too well - it probably wasn't her mother at all. Ulrich guarantees the conversation was authentic, admitting it's his job to monitor all guest communications. But he was moved that the little girl who used to hide in the closet seems to have finally made peace with herself and her mother.
Ulrich returns to his office for another videoconference with The Director, assuring her that everything is going according to protocol. The Director thinks Janet has gotten to Ulrich, but he insists he's as objective with Janet as he is with all the others, even Joe, who's as self-destructive as ever. The Director warns that Joe is just as important as everyone else, and Ulrich is to put his personal feelings aside. He assures her that his only interest is completing the cycle safely, with a positive outcome for all. After signing off, Ulrich turns to look at Janet, whose face is displayed on all his monitors. He reaches out as if to touch her...