- Walt and Jesse decide to start their own little empire with the help of Jesse's friends: Skinny Pete, Combo, and Badger. Meanwhile, Hank tries to pull himself together after his encounter with Tuco.
- Walt continues his treatment and is starting to feel better but is concerned at the growing medical bills. Jesse begins to re-establish himself paying off his debts and getting a new place to live. He's interested in the renter however, Jane Margolis, who lives next door. Walt and Jesse soon rev up the RV and are cooking again. Jesse's not keen on selling the stuff on the street and suggests he and Walt take over Tuco's role as a distributor. Hank and the DEA have come across the name Heisenberg and aren't sure if he's real or just an urban legend. Hank is promoted and soon appointed to a tri-State drug task force. He may have health issues of his own however.—garykmcd
- Tensions and bills mount at the White household. Hank makes progress at work, but struggles with some residual effects from his encounter with Tuco. Jesse takes charge and assembles a crew of dealers to get their product out on the streets.—TheDearHunter1878
- Walt finishes his first round of chemotherapy and is told he will learn the results in two months' time, around when his baby is due. However, Walt begins to feel overwhelmed by the growing medical bills. Walter's 3 day stay at the hospital cost USD 13,000, and the money he made from Tuco is running out. While he is vomiting into the toilet, he finds something clogging it - the packet of cigarettes Skyler was smoking.
Jesse returns to Clovis to make good on his word: he pays for the towing and repair of his RV. He also works out a deal to store his RV in Clovis' lot for $500 per month, and buys a used car from him. Next, he rents an apartment from Jane Margolis (Krysten Ritter), who manages the property and lives next door. Although he likes the space, he has no credit history and can only pay in cash. She initially refuses to rent to him, but eventually agrees after raising the price for cash only. Walt and Jesse soon start up the RV and are cooking again.
Hank is promoted to a high-ranking Albuquerque liaison for the DEA, and will have to split his time between the city and El Paso, Texas. He goes out to celebrate with his friends, but has a panic attack on the elevator ride down. The next day, he takes off work to bottle some of the beer he has brewed at home. Marie is confused at this behavior, but he assures her everything is all right. After she leaves, a bottle he is holding breaks, cutting his hand.
Meanwhile, Walt and Jesse meet again to discuss how to distribute their Meth. Jesse does not want to work on his own now that the DEA have found him, and suggests building a network of dealers so that they can be both distributors and producers. Walt is initially reluctant, but Jesse threatens to walk if they don't follow his plan. Jesse says that the partnership agreement was that Walter would only cook and Jesse is in charge of distribution. Later, Jesse invites his friends Combo (Rodney Rush), Skinny Pete (Charles Baker), and Badger (Matt L. Jones) to his apartment, and discusses using them as dealers. The price is $2500 per ounce. The dealers keep $500 and Jesse gets $2000 per ounce. This is premium stuff, and hence priced above the market stuff at $1800 per ounce.
At a cookout celebrating Hank's promotion, Skyler demands that Marie apologize for giving Skyler the stolen tiara, or it will irreversibly drive a wedge between them; Marie tearfully does so.
Jesse's dealers are doing well selling their Meth, until Skinny Pete is robbed by one of his customers. When Jesse gives Walt his share ($16000), minus the stolen money ($1000), he explains that it is breakage-revenue loss from damaged, lost, or stolen goods-that must be expected as the cost of doing business. Walt, however, worries what will happen when word gets out that they can be robbed with impunity. He later shows up at Jesse's apartment and gives him a gun, telling him to take care of the problem. He also confronts Skyler over her smoking, but she refuses to apologize for keeping secrets when he has been doing the same.
Hank and the DEA have come across the name Heisenberg and aren't sure if he is real or just an urban legend. Since Tuco died the supply of Meth in the city has dropped significantly, and the dealers have only name on their list: Heisenberg. Hank is promoted and soon appointed to a Tri-state drug task force, however he may have health issues of his own.
That night, Hank is woken by what he thinks are gunshots, and goes through the house with his pistol drawn. It turns out to be caps popping off of his home brewed beer bottles due to pressure. The next day, he drives down to the Rio Grande and throws his trophy of Tuco's grill into the river.
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