Martin decides to date Sandra regardless of the consequences.

Martin gets a new video camera and inadvertently videotapes children's television celebrity Uncle Bouncy committing a sex act with a prostitute in a public alleyway. Martin opts to caution Bouncy himself about his behavior in person before turning the tape over to him. But, Bouncy's abusive and intransigent attitude convinces him to sell the offending footage to Eddie for broadcast on his show.

Gibby convinces a reluctant Martin that the big Xmas book should be the memoirs of a gay man dying of AIDS.

Gibby informs the crew that they are all fired, just to soften the blow that there will not be bonuses (not really fired). Martin is talked into a nickel and dime porker game with his co-workers. They play in Martin's apartment. Expecting pizza, Martin finds Gibby at the door. Carter, the brown nose, had told Gibby about the game. Gibby lays down a large pile of $100s (the firm is doing financially badly, not him). All but Martin want to play high stakes, until Martin sees his cards. After losing big ($12,000), Gibby starts betting vacation days. Eventually clothing and household appliances get bet.

Martin, while putting away Jeremy's laundry, comes across an adult magazine and a joint. Martin informs Judith, and they agree that Martin will have a talk with Jeremy. Jeremy agrees to not smoke pot, and Martin admits that he used to smoke pot a long time ago. After Martin discusses the matter with Eddie on the basketball court, they return to Martin's apartment. Eddie spots the joint and lights up. Martin joins him.

Martin's romance with Sandra comes to an abrupt halt when he learns that she is the wife of a candidate for the Senate.

During the filming of a movie about Judith's husband, Martin falls for the actress playing Judith, and Judith falls for the actor playing Richard.

Eddie pushes an ""ugly"" sister onto Martin to score points with Marsha. The ""ugly"" sister (Chloe) has a book (""The Feminist Manifesto"") she wants Martin to read. Martin likes Chloe (who isn't actually ugly), but hates the book. Reluctant to reveal his true feelings, and hoping his publisher with reject the book, Martin passes the book to Gibby. Gibby really likes the books market potential.

Martin's new girlfriend of three weeks, Charlotte, has a porn star past. Martin learns from Eddie. Charlotte reveals that her biggest secret is that she cannot drive. Martin begs to differ, and Charlotte admits to appearing in six porn videos to pay for college and is not ashamed. Martin and Charlotte try to continue their relationship despite this conflict. Martin tries to continue dating Charlotte, even though he keeps seeing her in porn star roles and settings.

Australians have bought Whitestone, and great change is in the air. Gibby Fiske makes his first appearance as the new boss at Whitestone, and he doesn't want to publish literature. Gibby calls Whitestone employees into his office, one at a time. Most of Whitestone's employees suddenly find themselves ex-employees. At his meeting with Gibby, Martin mentions many books, but all are too literary, not sleazy enough. Finally, and desperately, Martin states that he can get the autobiography of the host of the sleazy Eddie Charles Show. Martin begs Eddie and Eddie admits that if he did write an autobiography, he would go to a larger publisher. After more begging, Eddie eventually agrees to allow Whitestone to publish his life story. Conflict erupts when Martin seems to be leaning towards the more scandalous stories.

Martin has gone on many dates after Judith and Richard's wedding, but he can never seem to perform. After discussing the problem, reluctantly, with Judith, Martin decides to go see a shrink. While paying for the first session, Martin spots an attractive woman also paying her bill. They ride the elevator together, and after Martin saves her from choking, they hook up. Judith treats the woman, and runs into an ethical problem, as she knows that the woman has a problem with rage.

An old professor of Martin's offers Martin his own show, called ""Book Beat"", on public television. The show is run by college students for credit. After the first airing of the show, Martin is stalked by an over-enthusiastic fan (Nora) who sends him flowers and other things. Nora storms the set with a bomb.

Martin and Judith are audited by the IRS for the last year of their marriage. They go through old receipts together. An old receipt proves that Martin had an affair with Nicki Rosen, Judith's friend, while still married to Judith. Jeremy wants to go to a party that lacks parental supervision, but his parents won't allow him. Martin and Judith fight about the affair during audit at the IRS office. Jeremy uses the conflict to trick his parents so that he could go to the party. At the party, Jeremy plays spin the bottle.

Martin overreacts when he suspects that Jeremy has begun to have sex.

Gibby foists his possibly illegitimate son and Whitestone's newest editor upon Martin - Alex Farmer. Toby takes an immediate dislike to Alex and his secretary Skylar.

Judith and Richard Stone are about to be married, but Richard is off somewhere helping the less fortunate and Judith is frantically trying to make every thing perfect for the perfect Richard Stone. After getting a bad new hair cut (frizzy perm), Judith turns to Martin for help. Judith and Martin sleep together, and Martin hopes this might mean something more. Martin reminds Judith that she acted this way before they married (and luckily, the man she slept with before their marriage was Martin). Judith, somewhat less flustered, gets married to Richard Stone.

Cousin Phil visits, and informs Martin that he has split up with his wife (shrew). While in Martin's office, Phil sees Toby for the first time, and is smitten. Phil begs, and Martin helps Phil pursue Toby.

An old female friend of Martin's, Bonnie, returns to New York City from Cleveland to pursue a stand-up career. Bonnie's first performance as a stand-up bombs. Martin tries to encourage her by suggesting that she should use her past relationships in her act (which has more humor in it than her current act). Martin and Bonnie start to fall for each other and end up sleeping together. The whole gang shows up for Bonnie's second performance as a stand-up comic. Bonnie, following Martin's advice, discusses her relationships in her act. Unfortunately for Martin, Bonnie sticks to talking about her current relationship. The gang, and the audience, except for Martin, love the new act. Afterwards, the gang offer Bonnie funny stories about Martin. Alone together back at Martin's apartment, Martin almost starts to tell Bonnie about his reactions to her new act. A phone call interrupts. An HBO scout was in the audience and loved the act. Next Friday, Bonnie is informed, an HBO big-wig wil

Eddie invites Martin to a Talk Show Digest awards night, where they are both approached by a beautiful woman called Alisha.

Martin is dating the office's college student bagel girl Julie, even though she seems to have more in common with Jeremy. But, Martin breaks up with her in order to pursue a relationship with her mother Kate who he becomes infatuated with after a chance meeting. The only problem is that Kate isn't thrilled about the idea of dating a guy who takes advantage of college girls. The simple fact that she hates Martin doesn't dent his persistence, though, and he tries every trick he knows, including a surprise night-time candle-lit dinner in the back of her apartment to the strains of ‘Strangers in the Night', to win her over, apparently to no avail…

Following directly from the previous episode, all of Martin's hopes seem shattered when Kate appears unimpressed, but, touched by his clumsy attempt at romance, she finally accepts his offer of a date . . .

Martin's new girlfriend has just come out of a bad relationship. She and her former lover, Ryan, had many problems before their breakup. But now Ryan is trying to rekindle their relationship despite her new relationship with Martin. Now Martin finds himself competing against her former lover, and Ryan has qualities that may be more than Martin can compete with.

Ellen, a beautiful writer of Martin's, asks him to her apartment, with an unusual request that he conceive a child with her. After talking it over with Jude, he accepts under the impression that he'll get to make love to her, but she only wants him to donate semen.

Martin and Judith take a pre-Xmas drive and get stranded in a barn, Eddie is stood up by a girlfriend and spends Xmas in a bar with Santa Claus, Toby wants to become a nun and Jeremy's special Xmas present from his girlfriend doesn't quite go according to plan.

Martin is blinded in a bizarre accident.