Heather loses her baby.
David sleeps with Jenny again. Laurie finds out and dumps him.
Jenny is using cocaine. She has been blaming herself for her parents' breakup, but Gwen says it's not her fault.
Jack stops Gwen's hotel reservations and attempts to sell Gwen's favorite hotel to a French woman Margot (a former lover of Jack's). Gwen interferes to break up the deal, kicking Margot out of the hotel suite. The hotel is saved.
Gwen and Heather have a bitchy encounter while Heather is recovering from the miscarriage.
Heather interrupts a board meeting and uses sympathy to get her position at Dress2K back. Jack approves her, and demotes Samantha. Now Gwen & Samantha are equals. Heather secretly diverts Dress2K money to Chandler's aviation project.
Faith still wants "danger." She leaves Ethan at the Pulse Club to dance with an older guy in the band. Later Faith and Ethan kiss at night in the tennis court.
Peter takes Samantha to a hill overlooking a blonde woman Maureen, with her baby, outside a house. Peter says it was his lost love who he let slip away because his work interfered with it, and now the woman is happily married. He broke her heart, all for greed and money. He cried. Samantha sees the good in Peter, and ends up sleeping with him. We find out that Peter paid Maureen to pretend the whole thing—she was an actress.
Chandler and Gwen find an injured dog on the street, and it reminds them of the loss of their child, bringing them closer.