Lee relaxes somewhat. She'd been worried he was about to say something stupid that she was going to have to yell at him for. Michael is good about that, as far as men go, but that's as far as men go. You can never fully relax around them.
“She has to believe in the moon, everyone believe in the moon.”
And Peggy is the one adventurous enough to smoke a joint in the very upscale ladies' room during a very prestigious awards ceremony, but Lee's not sure Michael knows about that. He would have smelled it on Lee, but Peggy wasn't the one he was leaning towards all night.