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 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.

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.

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.

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

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.