Stan finds a folder of cartoons Lou is drawing, and the creative team jokes about them. After Sally and some classmates "sword-fight with golf clubs," she is sent home from boarding school with a broken nose. Stephanie, Anna Draper's niece, is pregnant and running out of money in L.A. and calls Don for help. Don asks Megan if Stephanie can temporarily stay with her. Megan accepts, until Stephanie claims to know all of Don's secrets, at which point Megan writes her a check for $1,000 and Stephanie leaves. When Betty voices her opinion on the Vietnam War at a dinner party, Henry tells her to limit conversations to "how much you hate getting toast crumbs in the butter." Don visits Megan in L.A. but is disappointed that Stephanie has left. Megan hosts a party for her acting friends that Harry Crane unexpectedly attends. Sensing the awkwardness, Harry and Don go out to a bar where Harry suggests that Don should be working in L.A., because Ted Chaough is "useless" and Lou and Cutler are pursuing Commander cigarettes, a Philip Morris brand. Harry also warns that Don's job is at stake. After the party, Megan invites Don to have a threesome with her and her friend Amy. The new office computer triggers Ginsberg's paranoia, so much so that he cuts off his own nipple, giving it to Peggy in a box before he is hauled away from the office on a stretcher. Back in New York, Don interrupts Lou and Cutler's meeting with Philip Morris executives, who are wary about the agency after Don's anti-smoking letter. Don states he wrote that letter to save his business and is now the only experienced cigarette man with the competition's knowledge. He suggests they "force" him into service. After the meeting, when alone in the street, Cutler glares at Don, accusing him of attempting to save his own position at the firm.

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