After an outing with Joyce to Jones Beach, Peggy finds herself in close quarters with Abe, and despite any past differences they end up Doing It, multiple times. Abe then shows up to the office pretending to be a delivery boy to score some more Peggy tail, a development that seems not to be lost on Stan, who tries to hit on her and is thankfully shot down in exceedingly clear language.

We meet Ken's wife and her parents, her father awesomely being RAY WISE, and also learn that BBDO knows about Lucky Strike leaving SCDP. Ken spreads the bad news to Pete and then Don like wildfire, and before you know it Roger comes into the office and finds the bunch of them plus Bertram waiting to ask him what's up. Roger, understandably and yet to his extreme discredit, plays dumb and fakes a call to Garner, the upshot of which is that Roger fake-offers to take a fake trip to try to get the account back, and then calls Bertram from fake North Carolina and tells them the very real news that Lucky Strike is over. He then comes clean to Joan, getting a strip ripped off him as a result for not having told her what was up, and even though she allows him to come over to her place, it's only to inform him that she can't be involved with him anymore. Bertram later tells Roger that Garner never took him seriously because Roger never took himself seriously, and it may feel like an overly easy time for recriminations, but it still sounds like Bertram is spot-on as usual. When Roger arrives home, he finds a beaming Jane waiting with bound copies of his book, and the way he signs one for her is about the most listless thing you've ever seen.

Trudy is in labor, and when Glo-Coat dumps SCDP in the panicky wake of everyone hearing about Lucky Strike, Don accuses Pete of not having his head in the game, and of course as you'd imagine that's particularly unappreciated in light of what Pete did for Don last time. Pete confesses the situation to his father-in-law, who tells him that Ted Chaough would kill to have him over at CGC. Pete denies any interest in leaving SCDP, but later, when Chaough shows up to the hospital and tells him he'd be happy to have Pete become the other "C" in CGC, you have to wonder if it's an offer Pete will be able to refuse, even though if SCDP gets through this his name really should replace Roger's on the door. Also, Trudy finally delivers a baby girl, which is nice.

Don seeks comfort in Faye's arms after hearing about Lucky Strike, and after the partners announce the grim news to the rest of the company, Don realizes they need accounts however they can get them, even going to far as to attend the funeral of a prominent competitor for business. However, when he tries to get information about some clients' thoughts from Faye, she furiously invokes the Chinese wall she's mentioned once before, and even though he tells her he'd breach ethics for her were their situations reversed, she storms out. Later, Megan tells Don that she'd like to be a copywriter someday, so he allows her to sit with him, and after they get to know each other, she kisses him, and although he resists, after she assures him that she won't run out of there crying the next day, they settle in for some office lovin'. However, when he arrives home he finds Faye waiting to tell him she set up a meeting for him with Heinz, who's unhappy with their current representation, and then they settle in on the couch, being sure to leave some extra space for Don's guilt.