We're back at Coyote Sands and Peter asked his mother why they are. It's flashback time: it's 1961 and we see that Coyote Sands used to be a relocation camp. Dr. Shandra Suresh is in charge of it. Angela is dropped off there with her parents and younger sister, Alice.
As soon as the girls settle into their bunk, three boys walk in to say hello. They are Charles Deveaux, Daniel Linderman and Bob Bishop.
Back in real time, the group is still digging up graves. Claire is impressed with herself, with how unafraid she is to be here. Peter, however, is still quite displeased with Nathan. The two of them try to make up, as Nathan tries to explain that he always had everyone's best interests at heart, but Peter doesn't seem to be hearing much of it.
Let's flashback to 1961 again: Angela has dreams that say Dr. Suresh and the camp is not all that it seems. It's dangerous there. She tells Charles about this dream and he says they have to escape. Late one night, the three boys are ready to leave. They come to get Angela and - for reasons totally unexplained - say that it's time to go, but Alice cannot come along. We can't help but ask: why?!? Because she's a couple years younger than Angela?
This ends up being a MAJOR development, yet there's no concrete reason why Alice wouldn't simply be allowed to escape with the rest of the group. It's simply lazy writing, forcing character to only act in ways that move the plot along.
Anyway, complaints aside, Angela makes up a lie, tells her sister that she'll be back soon - and then runs away with the boys.
Back at the relocation camp, Alice is being injected with something by Dr. Suresh when she loses it. Oh, did we mention that Alice can control the weather? Well, she can. And she does. Winds blow, lightening strikes. The camp grows into a riot, as Mr. Petrelli is shot dead and Alice hides under a building.
Having learned what happened at the camp, Angela and the three boys decide to form The Company. Their goal is to make sure people with abilities never fall prey to that sort of fate ever again.
Back to the modern day: Angela says she has to find her sister, about whom she's had dreams recently. Angela ends up in the basement of one of the Coyote Sands buildings and look who comes in: it's Alice! She seems happy to see Angela at first, but then learns of her sister's deception back in the day. Alice loses it. The weather starts to go crazy again, until Angela talks her down and explains that she's putting her family at risk.
When Alice hears this, and sees Peter, she calms down... and runs away. Angela feels guilt over losing her sister again.
At the end of the episode, Angela, Nathan, Claire, HRG and Peter are sitting at the same diner where Angela and the boys made the pact for The Company in 1961. The family agrees to move on, as Nathan says he'll go back to Washington... until everyone looks up at the TV and sees that he's already there: Sylar, shape-shifted to become Nathan, is at a podium, taking questions from reporters...
Source: TV Fanatic