Don is working hard on the Jaguar pitch with an all male team. Peggy is left in charge of all other business. Herb Rennet, the head of the Dealer’s Association, asks if he could spend a night with Joan in exchange for favouring the SCDP pitch. Pete takes the offer to Joan and cajoles the other partners (except Don) into making her an offer. Lane suggests she ask to become a partner. She goes through with it despite Don’s objections. The pitch is won but Peggy leaves. After consulting with Freddy Rumsen she takes a job with Cutler, Gleason and Chaough.
Pete and Trudy have Don, Meagan, Ken and Cynthia over for dinner. Lane meets a new friend at the pub who offers the ad account for Jaguar to SCDP. Lane tries to bring him in alone but fails and Pete, Roger and Don step in. They end up at a whorehouse. When Lane finds out he is outraged and when Pete insults him he challenges him to box.