Pete is unhappy with his accounts at work so when the opportunity arises to meet with Duck Phillips, from a rival agency, Pete takes the meeting. However, when he arrives he sees that Peggy is there. Duck seems to believe that Peggy and Pete have a secret beneficial relationship between the two of them and that is why he wants them both to work for him. Pete was displeased by Peggy's presence and leaves the meeting. Back at work, Pete pitches an idea of marketing their client's TV to an African American audience but the idea is shot down both by the clients and his bosses – with the exception of Pryce.
Meanwhile, Don and Betty go to see Sally's teacher due to Sally's recent bad behavior at school. Her teacher learns that this is probably due to the fact that Sally hasn't been able properly grieve Gene's death. Soon after the parent-teacher meeting, Betty goes into labor. While Don waits in the waiting room, he shares a drink with another expectant father who tells Don stories about being a prison guard. While the men chat, Don learns that fatherhood will likely change him and that it will force him to be a better man.
While under the influence of the drugs at the hospital, Betty has a strange dream, having visions of Gene and her mother Ruth. Finally, her son is born and she names him after her father.