Jeremy (Martin and Judith's son) is having trouble in school. He has become distracted by his rather attractive female teacher. The teacher informs Judith, and Judith informs Martin. Martin tries to give his son the ""sex talk,"" but learns that Jeremy has already been informed, though he does have some questions. Martin visits the classroom and meets with Jeremy's teacher and is himself distracted with her beauty. Martin and the teacher go out for dinner.

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 plans for a weekend break are dashed.

It's the Whitestone office party, and Martin is less than thrilled to be there, until he notices a hottie making eyes at him from across the room. He gets to know the woman, Alannah, better during the evening. Afterwards, Martin bumps into Gibby and is surprised when he shows off Alannah as his latest plaything. In the days following, Martin is paranoid that Gibby suspects he and Alannah are carrying on behind his back.

Gibby hires Toby after she is fired by Martin.

Martin has trouble climaxing and is referred to a therapist. Through hypnotism, she leads him to suspect he is repressing the memory of childhood abuse.

Martin's old apartment is becoming a huge money pit, costing him exorbitant maintenance fees and so he resolves to get rid of it. He has a meeting with Irwin Bader who isn't optimistic of getting much over $1,500, even though he sold it to Martin for $2,400. Libby expresses an interest on behalf of her son, but Martin passes on the idea.