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On this week's episode:
- Don meets with the Heinz guy about coming over to SCDP, but he passes because he doesn't know if SCDP will be around in six months.
- SCDP is told it is best if it stays in the cigarette game, as Phillip Morris is coming out with a new ladies' brand. They, the company bails on SCDP because they also don't know what will be of the agency in six months.
- Don runs into Midge and finds out she is married to a man who she was not romantically involved with. She invites him over for dinner, where her and her husband try to get money out of Don. After finding out Midge is addicted to heroin, Don gives her the $125 out of his pocket, and leaves.
- Sally is improving at therapy. The doctor explains this to Betty, but Betty has become too dependent on her chats with the psychiatrist to let Sally's sessions stop. She also tells Henry they should move to Rye after she catches Sally hanging with their creepy neighbor.
- The partners have to pay up to keep the agency alive, but when Pete tells this to Trudy, she forbids him from giving anything more to SCDP.
- Don writes an ad for The New York Times in which he confesses to why SCDP will not be taking any tobacco accounts in the future, but says the agency has its brightest future ahead of it.
- None of the partners are happy with the ad. Bert claims to have quit and walks out of SCDP with his shoes held high. Faye then has to leave SCDP because her company wants to work with tobacco again some day.
- The partners then have to go out and fire a number of employees to stay alive.