A weekend beach trip concludes with Peggy perched on Abe's lap in the back of Joyce's crowded car. Later in her apartment, Peggy and Abe fall into bed together.
At a restaurant with his fiancé and her parents, Ken receives the "condolences" of a BBDO employee for Sterling Cooper Draper Pryce’s loss of Lucky Strike.
Ken abruptly leaves the restaurant and tracks down Pete at the hospital, where Trudy has gone into labor. Unable to contact Roger to verify Ken's story, Pete calls Don, who tells him to wake Cooper and head to the office.
In his office with the partners, Roger fakes a call to Lee Garner Jr. "Thirty years, I have to hear it on the street?" Roger asks in outrage. Roger offers to fly to North Carolina to try to change Lee's mind.
Back at his apartment, Don tells Faye what happened. "You're the most hirable man on Madison Avenue," she assures him.
Pete returns to the hospital and informs Tom about Lucky Strike. Tom advises Pete to leave SCDP for CGC. "There's no reward in going down with the ship," Tom counsels.
In the morning, Abe prepares to leave Peggy's apartment, but she asks him to stay and they make love again.
Roger, pretending to be in North Carolina, phones Cooper to say that Lucky Strike is lost for good. Cooper reads a prepared statement to the staff, after which Don maintains that nothing will change. "We're going to push ourselves," he exhorts, "and it will be exhilarating."
Privately, Don informs Peggy that she will present a concept to Playtex the next day as planned. It would look desperate if he suddenly stepped in. "I'm counting on you," he says.
Roger calls Joan from a New York hotel, admits to knowing that the account was lost and begs her to visit him after work.
Working with Stan and Danny, Peggy waxes about how Playtex gloves preserve a woman's hands for the things she really wants to touch. Abe arrives pretending to be a delivery boy, and the two retreat to her office. "Am I wrong, or is she giving it off?" Danny asks Stan.
After Ken and Pete make calls to reassure clients about SCDP's continued viability, senior staffers meet to assess the situation. Don exits the meeting to take a call from a Glo-Coat executive, who drops the agency. Don smashes his Clio Award.
Don returns to the meeting and chews out Pete for being so distracted over Trudy's impending delivery that he caused Glo-Coat to drop SCDP. Pete leaves the meeting and returns to the hospital, where Ted Chaough hands him a baby gift and offers him full partnership at CGC.
Roger, meanwhile, visits Joan at her apartment and kisses her. "I can't do this anymore," she says, turning him away.
SCDP's clients are "running scared," Don tells Faye in his office that evening. When she alludes to unhappy clients at other agencies where she consults, Don asks her to name them. She declines to elaborate on ethical grounds. He'd do it for her, Don argues. "I would never ask," she replies.
The next day, Peggy nervously rehearses her Playtex presentation. Under pretense of relaxing her, Stan leads her in a deep-breathing exercise that ends with him kissing her. Peggy pulls away. "Why do you keep making me reject you?" she asks.
Roger continues his charade, announcing to Cooper, Don, and Pete that he failed to change Lee Garner Jr.'s mind in North Carolina. When he finishes, Don excoriates Roger for ignoring his sole account.
Megan interrupts the gathering to announce that Trudy delivered a baby girl. Pete smiles at the news, then heads to an influential ad man's memorial to drum up new business.
Roger complains to Cooper about Don's tirade. "Lee Garner Jr. never took you seriously because you never took yourself seriously," Cooper replies.
Walking into the Playtex meeting, Stan notices that Peggy’s teeth are smeared with lipstick, but he doesn't alert her. Peggy makes her presentation, missing an executive's hints about the stains. After the meeting, Harry points out the problem. Stan smiles.
Don, Pete, and Cooper attend the memorial service along with Freddy, who identifies clients that might be lured away from their agencies. Back at the office, Don notices that the Clio has been repaired. Megan admits to fixing it and asks to stay late to learn more about the ad business.
Don quizzes Megan about her background. "You're in my head all day," she comments, "and you don't know anything about me." Megan kisses Don, who withdraws. Megan insists that she won't repeat Allison's dramatic departure from SCDP, and Don and Megan have sex.
Roger returns home to Jane, who presents him with bound copies of his autobiography. "I'm so proud of you," she says.
Don arrives at his apartment and finds Faye waiting for him in the hallway. She arranged a meeting for him with Heinz, she says. "You didn't have to do this," Don says. "I wanted to," Faye replies.
Faye leads Don to his sofa. "Just sit with me," she says, nestling her head on his chest.