At home, Don watches the Democratic convention on TV while Megan packs his bags for a California trip.
In a partners meeting, Ted says he'll meet with Chevy in Detroit. The partners discuss potential names for the new agency. Don and Roger leave for Los Angeles.
On the plane, Roger dissuades Don from preparing for their upcoming meetings with Sunkist, Carnation, and "the Avocado people." "Our biggest challenge is to not get syphilis," Roger says.
In the creative lounge, Ginsberg and Stan listen to a radio report about the Vietnam peace plank rejection. Jim asks about work for Manischewitz. Ginsberg calls him a Fascist. Bob Benson interrupts, chastising Ginsberg.
In Ted's office, Jim suggests firing all remaining SCDP employees while Don, Roger and Harry are in California. Ted encourages Jim to "start holding hands," beginning with Ginsberg.
Joan has lunch, arranged by her friend Kate, with Andy, the new head of marketing at Avon Cosmetics. It becomes clear the meeting is about business, and not a date. Joan praises the agency and picks up the check.
At the office, Jim assigns Bob to "handle the parties involved" in the Manischewitz meeting.
Joan tells Peggy about her lead on Avon. Joan wants to be the "account man" but expresses fear of being "knocked off the diving board."
Joan and Peggy approach Ted about Avon. Ted calls for Pete, naming him Head of New Business. Pete tells Joan to set up a lunch for himself and Peggy. Pete assures Joan, "You'll get all the credit."
Don, Roger and Harry arrive at the hotel. Harry shares plans to attend a party with movie moguls.
In his hotel room, Don watches news of Chicago riots. Megan phones, worried.
Joan meets Peggy at a restaurant and says Pete's not coming because he wasn't invited. Andy arrives and they discuss Avon's advertising needs.
At the Carnation office, execs ask Don, Roger and Harry why Carnation Instant Breakfast isn't a conflict with Life cereal.
Back at the agency, Peggy says Joan threw Avon away by not inviting Pete. "I have to do it myself," Joan says.
Stan calls Bob in to calm Ginsberg, who says he feels sick and can't attend the Manischewitz presentation.
At the L.A. party, Harry introduces Don and Roger to Cindy. Danny Siegel, Jane's cousin and former SCDP employee, is there with a woman named Lotus. Roger makes fun of Danny's height. Danny says he's making a major studio picture, Alice in Wonderland.
Don smokes hashish with a group while Roger flirts with Lotus by the pool. Provoked by Roger, Danny punches him in the groin.
Feeling the effects of the hashish, Don sees Megan dressed as a hippie. Megan says she quit her job to live in L.A. and has a "surprise." She puts her hands on her belly. "What do you think it is?" Don asks. "A second chance," Megan replies.
Don pulls out a cigarette and PFC Dinkins lights it. Dinkins, whose arm's been amputated, claims to be dead. "Dying doesn't make you whole. You should see what you look like," Dinkins says.
"Man overboard!" Roger yells. Don runs outside and sees himself floating face-down in the pool.
Roger, out of breath and wet, tells everyone to back away as Don comes to on the deck and spits out water.
In his office, Ted tells Jim that Chevy has signed off on the work. Bob enters and says Manischewitz is putting the agency in review. "Roger Sterling let you watch his dog, and it ran away," Ted tells Jim. As reward for "handling this like a man," Jim invites Bob to join the Chevy team.
On the plane home, Roger tells Don that "New York is the center of the universe," and the people in Los Angeles "don't understand what we do."
Avon sends samples to the agency. Pete reprimands Joan for excluding him: "A breach of the fundamental rules of this business." Peggy listens from Joan's office. She sends Meredith in with a fake message that Avon has called for Joan. "Posession is 9/10 of the law," Ted tells Pete, and "all agency business is your business."
The partners meet, without Joan, in Don's office. Ted announces progress with Chevy and Joan's involvement with Avon. Cooper reveals the agency's new name: Sterling Cooper and Partners.
When the partners leave, Pete tells Don, "That name is a consolation prize. It's a gravestone to our resistance."
Pete enters the creative lounge, grabs a joint from Stan and smokes it.