Roger Sterling calls in Don and says McCann is expecting them to deliver an address about Sterling Cooper's future to big-wigs in the Bahamas, with the intent to impress. It sounds kind of ominous and it sounds like the firm has an ax hanging over it.
There's a woman assigned to selling Don's apartment, which is now empty after Megan emptied out all the furniture. After a day of uninterested prospects, she berates Don and tells him how sad the apartment seems, and that you can tell bad things have happened in there.
Sally is going away on a "teen tour", and Betty tries to lecture her on boys. Sally tells her that the conversation has come a little too late. One of Sally's male friends reveals he's leaving to Vietnam. Sally's friend, who's 18, seems to have an eye for Betty, and he tries to kiss her in the kitchen. Betty refrains, and insists on being a faithful wife.
Joan Harris is out in Los Angeles working, and she meets a new guy-- a bit older, who says he's retired. He tries to keep her in bed and away from work. He follows her back to New York, and they have dinner. Things seem to be progressing, but stop very abruptly when the issue of Joan's four-year-old son arises.
Later in the episode, the gentleman brings Joan flowers at the office and apologizes. Joan says she would leave her son behind to pursue this flame.
Don and Peggy have the first of their magical interactions this half-season. Peggy asks Don to write her performance review. Don is reveling in her vision of her career's future, but she thinks Don is "shitting" on her dreams. She storms out suddenly.
There's a hilarious sequence with the Peter Pan Peanut Butter clients. The young copywriters were assigned to pitch to the executives and completely dropped the ball.
Don gave one of the kids a story about Lucky Strike cigarettes back in the day. One day, when Don messed up on a pitch, he revisited with the clients shortly after. He told the client he's surprised they had the balls to show up again after they embarrassed themselves. They were so impressed with the brazen ballziness that they fell in love with Don.
The kid took it to heart, and said the same exact thing to the Peter Pan client, who was completely appalled. Pete kicked him off the business immediately, and the kid stormed into Don's office to point the blame at Don. After an amusing exchange, Don fires him.
When Don arrives home, he finds out his apartment has been sold to a couple. It seems that suddenly, he has nowhere to stay.