After punching a minister in a bar, Don sleeps it off in jail. He then realizes he's been out of control and decides to stop drinking. He also decides that he wants to go to California to start over. After revealing his true childhood during a pitch to Hershey's, Don decides to let Ted go to California. Megan is unhappy about this and storms out on Don. The partners aren't happy with Don's pitch about his childhood at the whorehouse and give him an extended period off.
Ted and Peggy continue to have relations, and he tells her that he's going to leave his wife, but in the end he decides to save his family. Going to California to run the Sunkist branch helps him do that.
Pete finds out that his mother has been lost at sea, and then gets taken off of the Chevy account when they find out he can't drive a stick shift. He goes out to California with Ted.