Heather loses the baby. Gwen tries to provide comfort, but clashes with her after Heather remarks that the miscarriage was probably best for the family. A sobbing Heather shows up at a board meeting and convinces Jack to let her share the reins of Dress2K with Samantha. Chandler accuses her of using the loss of the baby as part of a scheme. Chandler and Heather later grieve for their child after trying to save an injured dog. Gwen is furious when Jack withdraws funding for her hotel renovations. He then tries to sell the flagship hotel, the Beverly, to Margo Dupree, the pretentious owner of a large chain. Margo backs out of the deal after Gwen throws her out of the Beverly. Jack softens and decides to inject more cash into the hotels. Peter takes Samantha to an observation point, where he watches a woman and baby. He claims that the woman was his fiancée, whom he left because Richard threatened to disinherit him. He tearfully states that this is why he cannot open up to anyone. Samanth

Samantha and Heather get into a slap fight after Heather appears on a magazine cover as the ""savior of Dress2K."" Chandler and Scott are enraged when their budget gets slashed in half. Heather discovers Peter's affair with Samantha. Chandler's comments about Peter's playboy past prompt Heather to suspect that the story about Maureen is phony. She pays Maureen $10,000 for the truth. She threatens to tell Samantha unless Peter has her restored as head of Dress2K. Peter convinces Jack to help him out. Jack promotes Heather, explaining that she is willing to shift funds from Dress2K to the aviation department to provide the necessary funding. Samantha quits, but Peter persuades her to come back and help him plot against Heather. Chandler and Heather discuss the possibility of a relationship. Chandler creates a stir by asking Heather to dance at a company function. Jenny pushes for a promotion for David, and freaks him out by discussing their long-term plans as a couple. Jack notices Laurie'

Gwen and Jack disagree about how to handle the situation after word of Heather's embezzlement gets out. Gwen has Heather arrested in the middle of a party, but she is quickly released. Heather begins suffering nightmares about her childhood. Gwen is furious to see Jack consoling her. Samantha refuses to move in with Peter because it goes against her religious beliefs. He eventually proposes, but Maureen reappears with more blackmail demands. Jenny tries to keep Laurie away from David by setting her up with someone else. Gwen tells them that she is tired of serving as their referee. Ethan catches Faith kissing another guy. Scott becomes attracted to a woman who works for the aviation division's chief competitor. He fears that she stole information from him.

Peter pays off Maureen, but warns her to stay away for good. Peter and Samantha travel to her grandfather's winery to ask for his blessing. He doesn't feel that Peter is the right man for her. Peter angrily leaves and says the relationship is over. Samantha later has a change of heart and returns home. She tells Peter that she loves him, and will marry him in spite of her grandfather's objections. Maureen ignores Peter's threat and continues to cause trouble. After an encounter with a high school classmate, Heather admits to Chandler that she has been lying about her past. She had to change her name to escape an abusive stepfather. Heather continues to have nightmares, and is terrified when she receives a phone call from the man stalking her in the dreams. Jack and Gwen sleep together, but Gwen considers their night together a mistake. Heather tries to pry into their business and spread gossip. Faith dumps Ethan in favor of her other boyfriend. Ethan wins her back by follo