- Sterling Cooper Draper Pryce finds out that Lucky Strike is leaving the agency. Roger doesn't tell anyone that he's known for a while. He later confides the truth in Joanie, who then breaks off all romantic ties with Mr. Sterling.
- SCDP runs around trying keep all of their current clients happy, and attempting to gain new ones. Pete is courted by Ted Chaough to join his agency, while Trudy gives birth to the couple's first child, a girl.
- Peggy sleeps with the writer who had previously driven her so crazy. Things appear mighty serious between the two rather quickly.
- Don's relationship with Faye is going well until he uses her to help SCDP. She gets angry but ultimately helps him even though she might jeopardize her career. She sets up a meeting between Don and Heinz.
The episode ends with Faye in Don's arms, but it's a bit awkward and here's why: we know that Don just slept with Meaghan.
Pete's Father in law: There's no reward in going down with the ship.
Pete: I have an agency. I'm a partner.
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Faye: You're the most hireable man on Madison Avenue.
Don: I'm not at that point yet.
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