It's morning at Gwen's place. Madame something or other is on her way over to give Ethan French lessons. Where's Jenny? Laurie blabs that she's over at David's. Jenny's twenty-three so she can go on sleepovers without asking permission. Twenty-three my ass; she's at least thirty. Mom wants to know what David's like. Laurie gushes over him as if he were her own. For some reason, Gwen encourages Laurie to be more impulsive. I wonder if we'll see that play itself out later in the episode?
Heather's office. The show's just starting. Peter's sitting there with his laptop. He replays the video and Heather is stunned silent. She admits to the affair, but says that it took place before she even knew who Richard was. So what does Peter want? First, he wants Dress2K (probably just for the dresses). It's a $150 million company. So it's gone up in value fifty percent since they acquired it two weeks ago. What kind of assurance does Heather have that Peter won't continue to blackmail her after she hands the company over? None. Is there anything else she can do -- say, come onto Peter awkwardly as she's done in the past? If she divorces Richard and crawls back under the rock she came from, Peter may go easy on her.
Jenny keeps practicing her presentation over and over, but continually fumble her lines. Even worse, she's just returned from the dry cleaners and nothing looks good on her. David has all the confidence in the world that she'll be just fine. Plus, she looks great when she's wearing nothing at all. How sweet is that? He suggests that she work on taking deep breaths but she's got something else in mind: Jägermeister!! She searches the house for liquor, but every decanter is empty. Thankfully there's gin in the freezer. She slams back a slug, only to discover Ethan watching her every move.
Richard and Gwen are enjoying afternoon tea. They discuss Chandler's interest in returning to the Navy. Richard knows how Chandler feels. The military is so clean-cut and the world is so complicated. What's he getting at? Gwen wonders? They've been divorced for seven years and yet they're still incredibly close. How many other divorced couples can say that? Richard apologizes for screwing up the marriage, and she apologizes for taking so long to forgive him. She always has and always will be his best friend. Better keep that in the past tense, there, Richard, because it's 8:40 and I think I hear the horses coming.
The presentation to the Aussies is in full swing. Someone asks Jenny how they're going to handle the skyrocketing lease rates in downtown Sydney (damn Olympiad). She answers with a red herring about attracting the wealthiest and hippest clientele, and then negotiating below-market rates as they've done in London and Paris. She's won the Aussies over, and it looks like the money's coming.