The romance between Peggy and Ted was brewing all season long, and though it culminates in something much larger, the first step is a kiss initiated by Ted. He loves her, and she loves him, but alas! They cannot be together. Peggy is with Abe, and Ted is married. Of course, things don't end there, even though it takes a while after Peggy and Abe break up. Ted's wife shows up at the office, Peggy retaliates by parading around the office in a cleavage-baring dress, and Ted takes the bait. He shows up at her place and they sleep together, but despite his promise to leave his wife, it's Peggy he ends up leaving.