Peggy assists Ginsberg with a problem while Stan ends up embarrassing one of his superiors.
Stan finds a comic created by Lou on the photo copier.
Shirley is worried that people will see Lou's comic.
Don's "niece" Stephanie calls collect. She's pregnant. Don sends her to Megan. She looks a lot different than last we saw her.
Lou forces everyone to stay late because Stan makes fun of his comic.
Betty and Henry are hosting one of the houses during a neighborhood pot luck and talk about politics.
Stephanie and Megan talk about Don and Stephanie's pregnancy. Megan makes Stephanie feel awkward and tells her she doesn't know Don, that he wouldn't approve. She writes her a check and sends her on her way.
Henry tells Betty she embarrassed herself way more than him with her talk about the war.
Lou decides he can wait for the work on Monday and leaves the office.
Don flies in Saturday and Megan tells him she gave Stephanie money and she went away.
Ginsberg cannot stand the hum of the computer. He stuffs Kleenex in his ears and walks into the hallway and sees Lou and Jim talking in the computer room. He goes to Peggy's and tells her they're homos.
Don is out of place at Megan's party. Megan tries to make Don jealous and it doesn't work. Harry shows up at Megan's with his girlfriend.
Bobby is afraid Betty and Henry are going to get divorced. He wants to run away with Sally.
Ginsberg tells Peggy they have to reproduce to stop the computer from turning him into a homo. He attacks her on the couch and she sends him home.
Harry tells Don he's going to make sure he's still important. Harry says Jim and Lou are pursuing Commander Cigarettes and if they get it, Don'll have to go.
Megan suggests a threesome with her friend Amy. They go through with it and Megan is very happy when they wake up.
Stephanie calls and she and Don speak.
Henry and Betty continue to argue. She's sick of people telling her what to think. He tells her if she's so smart then she should run for office. She says she doesn't know what she's going to do, but maybe she will.
Ginsberg gives Peggy his nipple in a box.
Don steps into the meeting with Phillip Morris and tells them he's prepared to leave the agency if they give him a shot. He also tells them the man who wrote the letter was trying to save his business, not destroy theirs. Like Lou, he has over 10 years of tobacco experience and he stayed the execution by the government for years. He's the only man who knows the opposition; they shared their strategy with him and he knows how to beat it. Don doesn't think their friends at American Tobacco would like it much if they forced him to apologize, given they're still the competition.
Ginsberg is taken away in restraints.
Jim asks Don if he thinks what he did will save him.