Richard is miserable as the new production head for Prodigy's Captain Magee show after being fired from Pyramid for having sex with Siobahan on the boardroom desk. Alan is at a health spa having recently undergone minor surgery and now he's announced to the executives at Pyramid he's selling the company to Dennis Weston of Prodigy. Alan plans to retire and return to what he calls his first love, producing films, but Veronica is able to talk him out of it. Her and Richard are able to get the merger to reversed and Alan ends up buying Prodigy instead of the other way around. She then gives Richard his old job back.

Alan sends Victor to the Camans to deposit some money he ‘borrowed' from the company. Alan is speaking in Australia about how he ‘saved' the show. Damacles has taken on a far more, homoerotic undertone now that Richard has added a new young, virile sidekick. At the same time Damacles is complaining that he still doesn't have his own action figure. Alan decides to go to the Camans himself in order to rack up his frequent flyer miles without the knowledge that Victor has hidden a sick lizard in the briefcase to be released. When Alan arrives he is arrested when the lizard escapes and must use the briefcase full of money to bribe his way out of trouble.

Alan hears of a great team building retreat through Moses Znaimer. Without knowing anything about it Alan signs up the office staff to attend. When they get there they discover a Facillitator who won't let them leave. All of his activities have long drawn out storries attached to them, but in actual fact they are just lame games we all played in school. (Egg on spoon) The retreat ends with Victor falling into the fire pit and the group leaving. In order to make up for the hell they went through, Richard calls another production company and tells them about a ""Great Retreat""

Pyramid Prodigy is having growing pains, Alan rents the bar down the street to hold a private party for the staff that he has just given the day off. They run a video tape of Alan who proceeds to basically fire the whole company. What they don't realise is they have also fired someone who happens to be Keifer Sutherland's brother in law. Some fancy footwork, and quick words on the part of Richard gets him back into the company, but at a press conference announcing the new Keifer project, Sutherland announces Pyramid Prodigy does not have the skills needed to produce such a series. As his videotaped speech plays, Keifer's brother in law sneaks away leaving his resignation with Veronica. The press mobs Alan and the gang before they can make it to the doors.

Walter Franklin Sr, the star of Beaver Creek dies during hair transplant surgery in Mexico, after Richard suggests he could save money by having it done there as opposed to the States. Pyramid's stock price plummets on the news as the network announces Beaver Creek will not go on. Richard buys 350k worth of stock as he re edits several unaired scenes of Beaver Creek to make it seem as if Walter had filmed a death scene just before he actually died. In the meantime Pyramid quickly orchestrates a show funeral in the Beaver Creek church, utilising the timeslot they had already been alotted. Problems arrise when the head of the Canadian Actors Union finds out they plan on airing the funeral featuring testemonials of the cast. Alan manages to get Beaver Creek renewed for another season when he threatens to hold back the final episode. Richard's quick editing inserts Shiobahn into the show as Walter's sons wife, fufilling a promise he made to her. Pyramid's stock soars and Richard finds

Richard is taken off the cop show project and is given a "mill show" (a cheap daily assembly line-type show) to produce.

Fed Up with being ignored Veronica lets the entire staff have the day off and takes Wanda and Lisa out to lunch leaving the men alone to panic over the question to the German taxes. The trio tear the office apart looking for the files. After they've emptied all the desks and filing cabinets searching for the tax returns they find a joint and a few bottles of booze and decide to have an impromptu bankruptcy party. Veronica's lunch runs a little late.... all the way to last call. The next day Veronica returns to work and reports the taxes were paid the week before. To make up for his years of mistreatment Alan gives her a 20% raise and 4 weeks paid vacation.

Canadian television production company Pyramid is hosting a party to celebrate 45 episodes of its popular ""Sword of Damacles"" and the announcement of 20 more shows. The problem is however that the star of Damacles doesn't want to sign on for another year. Richard Strong is having an affair with Siobhan Roy, the boss' (Alan) daughter. The two conspire to drug Raymond Dodge, Richard's brother-in-law by drugging his drink, and making it appear as if he had groped Siobhan in order to get him fired, allowing Richard to take his Job. The plan works and Richard is promoted to the new head of Television Development.

Alan Roy receives word that he is to receive the Sully (Lifetime Achievment Award) at this years Gemini Awards. He has Richard force the Gemini Producers move his acceptance to a television night from an Industry night, and hires a writer to write his acceptance speech. Six weeks later he is still unable to settle on a speech. Before the group can leave he is struck in the face by Damacles and is forced to stay behind. The group sets out to look for Richard who has excused himself to the boardroom with Siobahan where they are caught having sex on the boardroom table. Raymond, Richard's brother in law, is brought back to Pyramid at Siobahan's urging as she wants a role in his new show.

Richard settling in to his new job at Pyramid sets his sights on his new threat, Lisa. At the same time Alan promotes Victor and makes him the new head of all departments. A job previously performed by Veronica. Veronica gives a reporter writing a story on Victor's new promotion top secret information so as to make it appear as if Victor leaked it. The person ultimately blamed for the leak is Lisa, Victor's girlfriend, and she is fired. When Victor says nothing she goes home with Richard. The two sleep together promising they will never speak of this to anyone.... but Richard has his own agenda, he has taped it.

An old business associate of Alan (Murray) returns after joining a cult known as Spirentology claiming he created ""The Sword of Damacles"". The cult demands Alan pay them for using the show. Alan sends Victor to join the cult in order to beg Murray to drop the whole thing. The plan backfires however when Victor becomes ""transparent"" and joins the cult himself. The cult leader blackmails Alan for $50,000 in exchange for releasing their new cult member Victor. Meanwhile Alan is obsessing over his age when he discovers a gray hair... down there. Throughout all of it a mysterious company is trying to recruit Veronica and Richard without the other's knowledge. All the while they are trying to destroy eachothers reputation. We soon discover the recruiter works for Alan as a loyalty test. He reports that Veronica and Richard are the least loyal to Pyramid, and that Victor is the most loyal. But moments later we see Victor with Murray and the cult leader celebrating their scam against

Victor's movie is not going well. Their star ""Jeremy Black"" is flying off the handle at everything, putting the entire movie into jeopardy. Veronica fires the Vice President of Film Production so that they have a 'fall guy' for the problems on the film. Richard is instructed to hire a new Vice President of Television Development. He hires a non threatening idiot with no education or ambition to fill the post. Alan calls in from LA and asks Richard to start creating a new show about undercover cops that work in prisons to fight organised crime. Alan has an in with the President of NBC's new President of Program Development who loves the idea. Richard works all night on the idea quietly but the information is leaked to a VP at NBC, threatning the project. Richard heads to LA to try and throw off the young exec with a misinformation campaing. The young exec tells him Victor tipped him off to the show. Richard calls someone back home and arranges to have Jeremy Black mugged, and ha

Michael Rushton, star of Damacles wants to direct, the staff doesn't want him to. Unfortunately they have no choice as its in his contract. At the same time Siobahan wants to spread her wings and try something other than Beaver Creek and so Alan gives her a role on Damacles. Victor's nephew Ted, on a rehab release comes with him to spend a few days at the office, and instantly hits it off with everyone including Alan. Within hours he has pitched a whole New Media division to Alan and begins working on a Sword of Damacles video game. Alan orders Richard to babysit Damacles while he attempts to direct the show in an effort to keep it somewhat on budget, and on time.

Beaver Creek receives an award from a right wing advocacy group for its family positive message. Of course, the whole thing blows up in their face when the Pastor and Blacksmith announce they are marching in the Gay Pride parade in character. Alan assigns the task of fixing the Beaver Creek problem to Victor. He of course makes the problem even worse after faxing an inflamatory memo to the Pastor demanding he not march in the parade. The Gay community is outraged and they announce they will be protesting in front of the Pyramid building. Meanwhile, Richard convinces Alan to option an unpublished book by an author without actually reading the book first. The entire thing blows up in their faces when the book turns out to be terrible, and totally unproducable. Victor and Richard beg Veronica to help them, and she does in exchange for a series of future favours. In the end she gets out of the book deal, and appeases the gay community by volunteering Victor as Grand Marshall of the

Captain McGee, star of the company’s acquired children’s show is found out to be a wife swapper with his girlfriend while a German executive is given the cold shoulder as Pyramid employees try to sell him Beaver Creek as being “young and hip”.

Beaver Creek during sweeps week is 'lucky' enough to land aging fading star Dian Del Largo. The actress writes a new deffintion for high maintence after she fires the director, and demands Lisa play the part of Director. After a mixup with a delivery boy Dian fires Lisa and appoints Victor the new director. Her antics delay production and then has an anxiety attack on set that sets them back even farther. Richard finally calls in the Diva master (Gino Empry) to save the day and get the show back on schedule.

Alan is thrilled with a new management book he has found and is becoming obsessed with the idea of connecting nine dots with four straight lines (without any of the lines crossing) He instructs Richard to find a way to make Beaver Creek more interesting to the Americans. They decide to add an Asian to be a David Carradine character. The changes prove to be disastrous but end up being a setup by Alan. (Another management technique) Meanwhile, he is leaving Veronica completely outside of the loop leading her to believe she is being fired. She becomes so dispondant she gets drunk with Victor and later sleeps with him. Alan calls her into his office the next day only to throw her a surprise birthday party. Veronica, now even more furious announces that not only was her birthday six months ago... but that she was so upset she slept with Victor.

Alan decides Beaver Creek sucks after watching one of the episodes against the advice of everyone and fires the entire staff. He puts Victor in charge of directing, Veronica in charge of the budget, and Richard in charge of making sure the program is watchable, and he runs off to play golf, badly.

Alan's in a bad mood, so he cancels Christmas. The staff rebels against the idea and faxes a copy of the memo to the newspaper earning Alan the name ""The Grinch"". He decides to rectify the situation by donating the normal Christmas money to a needy family he can exploit. Meanwhile Alan seems to be cursed after a group of Wiccan's complain that Beaver Creek shouldn't say Merry Christmas, but ""Happy Holidays"". The needy family turn out to be actors hired by Alan. Richard returns the gift and he and Victor deliver the money to the real Todd family and watch them from across the street as they discover the gift.

A hard hitting journalist wants to do a piece on Pyramid. The group is nervous since she tends to expose all of the dirty little secrets within a company, and within Pyramid, there are plenty. Richard coaches the group in an effort to make them seem better then they are. The piece however turns out to be nothing more than a fluff piece on powerful fathers, and their daughters. That information however doesn't make it back to Victor who decides to dig through Diane's (the journalist) things to find something to blackmail her with. He finds a needle and threatens her and orders her out. The piece is then redone as a full hour expose on the problems of Alan Roy. Meanwhile, Alan has decided to write a script about Dental Surgeons. He is so paranoid that someone will steal his ideas he has them all written on red paper. Unfortunately his paranoia seems real when the office temp skips off to NBC to pitch to pitch the idea, and its picked up as a series.

Alan discovers the healing power of magnets and orders everyone to begin wearing them in their shoes as they prepare for the big television convention NATPE. They Pyramid gang begins working on a new 13 minute daily news show that will stream to every highschool in America but soon learn that Alan's arch enemy is also making his own project. At NATPE Richard straps the magnetic shoe inserts to his arms and proceeds to wipe all of Moses' pilots. His actions work, but not before Moses discovers his treachery resulting in him getting hired by Moses to run his new Bogota, Columbia station.

Richard is still trapped in Bogota working at one of Moses' new stations. The Industry Leader is still mad over the scam he pulled in the previous season finale. Moses sends Richard out into the Jungle by helicopter and the chopper is shot down. Richard is forced to return to Canada in a container with a group of illegal immigrants where he befriends a man who speaks no English. Back at Pyramid all is not well. The shareholders are out for blood after they learn that after their worst set of losses in the company's history Alan has given himself a huge bonus. Veronica is trying to douse the crisis. Meanwhile Wanda's attention is focussed on an Elian like child named Manolo on the television news. Richard returns to Pyramid surprising everyone, seeing as how they thought he was dead. Alan wants the group to track down Manolo's agent as television companies all over the world fight for the rights to his story. Richard returns again to Pyramid after a meeting with Moses with Man

Pyramid wants to make a new Beaver Creek movie using the original star, Mandy who's not thrilled with the prospect of returning since she accuses Pyramid of stealing her chidlhood. Alan has a new theory on successful television series. Using his new flowchart that links Baywatch, Flipper, Beach Combers, and Gilligan's Island he creates a program about ‘water' where water is the star. Alan uses a new computer program to write a script for his new movie Water. Richard smuggles a copy of the script to Mandy who is desperate to hurt Alan with the understanding that it's a terrible script, but something happens. She loves it, and agrees to sign on for the next two Beaver Creek movies if she gets the lead in Water.

Contrary to popular opinion, Alan sees no future for the Internet. Richard and Veronica dabble in a little insider trading after Pyramid is approached for their content by a happening Internet company. Meanwhile, Victor hits the rave clubs.

Wrongly imprisoned Dean Sutherland attempts to sell his story to Pyramid as a movie of the week. Alan, however has reservations as he does not trust the DNA evidence that freed him and points the finger at Sutherland when his new Palm Pilot goes missing. Meanwhile, Wanda and Veronica fight over the new man in the office.