Stephanie discovers Carrie's earring. She keeps it from Mark and instead returns it to Carrie at work and forces her to tell Mark she's unable to produce the play. Peter and Gil meet Rachel. Gil is very attracted to her but Rachel completely ignores him in favor of Peter. Carrie arranges a stage reading of Mark's play at a theater in the Hamptons. Mark must go there alone with Carrie because Stephanie can't come as she has arranged an urgent meeting with Allen about several circulation figures full of discrepancies she's found. But when she tells Allen he gets mad and orders her to stay off. Rachel tries to build up a friendship with Steph but secretly accesses the 'Communique' computers and leaks information on the circulation figures. Desperate to get aquainted with Rachel, Gil tags along to the Hamptons. However, Rachel instead opts to go to a banquet where Peter will be attending. Alex is serving people drinks at the banquet. She gets embarrassed but Peter convinces her to meet with him later. However, Rachel treats Alex like a servant and manages to sabotage this meeting. At the celebration of Mark's play at her family's cottage, Carrie lures Mark into the pool where she rips off his boxers. But Mark manages to avoid temptation again. Nikki breaks it off with Allen and he yells at her she can kiss her gallery goodbye. The news on the discrepancies has leaked to the press and Allen advises Stephanie to find the leak ASAP. Carrie realizes Rachel is after Peter and informs her Peter is off limits to her.