Freelance copywriter Freddie Rumsen pitches his concept for Accutron watches to Peggy at SC&P: "Accutron. It's not a time piece. It's a conversation piece." Amazed, Peggy calls it "a home run" but suggests an alternate tagline: "Accutron. It's time for a conversation."
Roger is awakened by the phone ringing on the floor of an unkempt hotel room filled with naked bodies. It's his daughter, Margaret, inviting him to brunch. He accepts.
At SC&P, Ken yells at employees for missing a deadline. Ken complains to Joan about his lack of "underlings" and instructs Joan to attend a meeting with Butler Footwear's head of marketing in his place. Ken explains, "If I meet with him, it's a demotion."
In Lou Avery's office, the creative team discusses Chevy and Accutron accounts. Peggy pitches her Accutron tagline, but Lou shoots it down.
Don shaves in an airplane bathroom. At the Los Angeles airport, Megan picks him up in her convertible.
Ted, visiting from California, catches up with Cutler in the New York SC&P office.
Don and Megan have dinner with Megan's agent, Alan Silver. Alan tells Megan, she's landed a callback for the Bracken's World pilot on NBC.
Joan meets Wayne Barnes from Butler at a bar. Wayne tries to leave, saying, "This conversation is best for Ken," but Joan persists. Wayne explains his plan to move all of Butler's advertising in-house, eliminating the need for SC&P. Joan asks Wayne to hold off on his recommendation until he speaks to Ken.
Megan shows Don around her house in the hills. Don hears coyotes and suggests moving into a more populated area: "It's like Dracula's castle up here." Megan stumbles, tipsy. Don helps her into bed, then sits on the couch to watch TV.
The next morning, Megan wakes Don on the couch. He declines her offer to drive him to the office.
Peggy runs into Ted in the SC&P break room. Flustered, Peggy calls for Stan. When Ted leaves, Stan tells Peggy to "buck up."
Don meets Pete at a delicatessen. Pete says, he's signed H. Salt Fish and Chips, but no one at SC&P's New York office cares. Pete suggests that Don purposely timed his California trip to coincide with Ted's New York trip, but Don denies it.
Pete shows Don around SC&P's L.A. office. Bonnie Whiteside, Pete's real estate agent, joins them.
Joan meets with a business professor at Columbia University. Joan explains Butler Footwear's cost-cutting proposal and, in exchange for information about client payment plans, the professor agrees to give her an official analysis.
A large color television is delivered to Megan's house. Upset, Megan asks, "How's it going to look, Don? You know everyone I know here is starving."
Peggy's tenant's child, Julio, complains about a clogged toilet. Peggy hands him a plunger and slams the door.
In bed, Don kisses Megan, but she hesitates and admits she's nervous. He kisses her more passionately and she returns the embrace.
The next morning, Don tells Megan he has to get back to work. On the plane to New York, Don sits next to a woman named Lee.
Over brunch, Margaret tells Roger, she forgives all his "transgressions." Uneasy over her new attitude, Roger says he forgives her too.
Roger returns to the hotel room, where a naked woman in the bed asks where he was. A man lies next to her. "If you were with someone, I don't care," the woman says. "You know anyone's welcome in this bed." Roger undresses, gets in the bed and stares at the ceiling.
On the flight, Don and Lee discuss their marriages. Lee says, her husband "died of thirst." Don says, Megan knows he's a terrible husband. Lee says, "I bet I could make you feel better," but Don declines her advances.
Peggy calls her brother-in-law, Gerry, for plumbing help when her tenant phones SC&P to complain.
Peggy approaches Lou about Accutron: "I realized Freddie's original idea was the best, but I didn't do it justice." Lou dismisses her, saying he already agreed to a different concept.Ken's secretary, Clara, congratulates Joan -- Mr. Butler will be coming to the office that week. Joan rushes into Ken's office, removes her earring and phones Wayne Barnes, upset that he's already set the meeting. "You will be competing against us, not against other shoe companies," she warns. Wayne asks Joan what to do. She advises him to say SC&P cancelled the meeting, needing more time to revise their strategy. He agrees.
After Peggy requests more Accutron boards in an attempt to change Lou's mind, Stan tells her to let it go. "Nobody cares about anything!" she yells.
In his NYC apartment, Don watches President Nixon's inaugural speech. Freddie stops by with sandwiches and says, Peggy loved Don's Accutron work. "You're making quite a name for me out there," Freddie says. Freddie encourages Don to "stop with this Cyrano bit" and get them both jobs. Don says, SC&P still pays him. "You don't want to be damaged goods," Freddie advises.
After finding Joan's earring next to his phone, Ken throws the earring at her and warns her to stay out of his office.
Peggy arrives home to Gerry asleep on the couch. After he leaves, Peggy collapses to her knees in tears.
Don walks out into the freezing cold and sits on the edge of his balcony.