Playtex has apparently arrived, and the energy in Peggy's office suggests the nervousness has returned to grab both of them, as Stan asks if there are no hard feelings, and Peggy assures him there aren't. However, when she smiles at him, we see there's lipstick all over her teeth, and Stan declines to let her in on that little secret. So instead of gaining points with her by preventing her potential embarrassment, he opts for schadenfreude. I wish I could say I've never done the same.
Some ad man is giving a eulogy for the deceased, which basically amounts to telling the family "Sorry he was such a single-minded career man," while the SCDP attendees strategize in hushed voices about whom to target, and all I can say about that is the sentence "We have dog-food experience" is uttered entirely unironically. Another guy gets up and tells some war stories that kind of amount to that same "Your husband/father loved you so much despite being at work 24/7," and this time Pete and Don look slightly stricken at the message. Not that they're going to abandon their plan to use the guy's death to get new accounts, but maybe they'll feel less jolly about it now.
Peggy gives her presentation, and one of the Playtex guys is impressed, but notices the lipstick and tries unsuccessfully to clue her in. Despite her obliviousness, she's hit a home run, and the guys tell her so before leaving. When they're gone, Peggy opines that that went well, and Harry nods. "You have lipstick all over your teeth." Despite how odious I think Harry's become, never let it be said that I think Rich Sommer can't deliver a line. Horrified, Peggy checks her teeth, and then looks up to see Stan give her a nice knowing smile. Peggy at least exhibits a sense of humor about it to herself after the initial shock wears off, but I still think she's going to try to get Stan to look through a spyglass with shoe polish on the eyepiece sometime soon.