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

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.

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.

The staff are anything but happy when Alan starts a protein diet as a New Year's Resolution and bans coffee and vegetables in the office.

The staff secretly start a coffee house in Richard and Victor's office. Alan eventually makes a fool of himself on television, and goes into a state of shock as a result of his new diet. He allows coffee back in the office. Wanda pushes for an espresso machine, but does not get it.

Alan has a nightmare about someone smashing a pyramid with a hammer in the company boardroom. He charges Veronica with organising a team building weekend. The entire office however is completely apathetic to the idea including Alan, who five minutes after ordering her on the Team Building quest announces he can't make it. At Veronica's request Alan hires Angela Windstrom to take over a few administrative responsibilities while he focuses on the creative. Within her first day Angela appoints four new vice presidents over Richard and Victor. As the week moves on Angela appoints another ten vice presidents. The trio has to team up in order to get the new Vice Presidents to resign, and it is soon after revealed that Angela and the others are from a company that specialises in team building excersises.

Alan orders Richard and Veronica to create a new kids show, a task they really don't want. Wanda overhears them talking about the project and asks to join in. Siobahan returns from an evening party accompanied by Victor to announce she is in love, with Kyle.... Victor's driver. But he's not just a driver... he wants to be an actor too. Siobahan demands Kyle be put on Beaver Creek as a producer but Victor says its not possible. When she whines to Richard he tells her that he can't have the job because he's not family so the pair get married. With Kyle now a producer on the show morale is dropping rapidly as he fires a series of important staffers. Wanda recognises Kyle as a stripper from photos taken from her friend's birthday party. Victor convinces Kyle to give up his claim for a divorce settlement in exchange for a part on the new kids show.

Victor is all Gung-Ho about his new Arcardia 3000 demo, which is basically Noah's Ark in space. Alan orders him to stop bothering him about it as he is too busy preparing for the DVD release of Prom Night at Horny High. Alan reflects back on his first film, as does Veronica as she realises that nothing has changed from the day she joined the company. Fritz Hoffman comes in from Germany to direct the Arcadia demo he brings with him the new European Super Model Tempesta Victor convinces Dino (Blind Jimmy) to play the hero in Arcadia. Things start to go badly when Tempesta falls for Dino and breaks up with Fritz. He falls apart and can't continue directing the demo. Things are not going well with Alan's Director's commentary for Horny High either as he begins to realise his participation on the movie was less important than he had originally thought. Fritz agrees to record the commentary for Horny High, and Alan takes over the Arcadia demo stealing all of the credit from Victor

Alan is concerned with morale at Pyramid and so he hires William and Susan Doyle to produce a video to boost morale. He instructs them not to tell Veronica, Richard or Victor what they are doing as it will only arouse their suspicions. The last time the company produced an internal video they fired most of the staff. (2x02 New Offices) Meanwhile, Alan gives Victor and Wanda a make work project to find a song he heard on the radio at some point over the last week. The only problem is he doesn't remember how it goes, what station he was listening to, or when he heard it. The three are convinced that this, and Alan's announcement that the Sword of Damacles needs to be more Australian are all designed to keep them busy so they are unprepared for their coming firing. Veronica and Richard come up with a great way to break up the team by planting ideas in each others heads.

Morale is down on the set of Beaver Creek. Siobahan wants a better story to showcase her ‘talent' and so the sacred trio of Victor, Veronica, and Richard come up with a story about a near death experience to help her. Before they can deliver the good news however she walks in on her father and mother who after having one of their famous fights begin making out. Siobahan freaks out and becomes even harder to work with on set, choosing to spend most of her time eating at the craft table. Meanwhile, to get back at his Ex-Wife Alan hires Adam Kalilieh, an art director to produce any film he wants, for however much money he wants. The movie goes way over budget, putting the entire company at risk and Richard convinces Alan to sell the film to his ex-wife's company in order to save theirs. Meanwhile, Veronica convinces Siobahan to quit Beaver Creek and move to LA with her mother, saving Beaver Creek $30,000 and episode.

Alan decides to kill off the entire cast of Beaver Creek in the final episode, leading everybody on the Pyramid staff to imagine their own eventual deaths. Richard gets hired out to the mayor's office to produce a campaign ad.