Ned's agency is going on retreat to a ski resort. When Stacey finds out, she corners Ned by convincing his boss that she should come along, to give them a chance to work things out.

When the ad agency gets a new board of directors, Ned is worried. As expected they ask Ned to prove his worth by creating a campaign to sell a client's sponges.

Kirkland's son, Skip, is derailing Ned's brilliant advertising pitches. Stacey is being forced to write yet more fluff. Amanda still isn't pregnant. All of which leads to copious (attempted) muffin squashing.

When Ned's agency hires Clay, a young and smart executive, to work with him, Ned finds himself worried that he might be trying to take his place.

When Eric's boss retires, Amanda convinces Ned to speak in favour of Eric with their boss. As a result, Eric gets the job, but only to have Ned trying to coerce him into some budget gymnastics.

Ned and Stacey agree to find a date for each other. Although Stacey's choice ends up being disastrous for Ned, she falls in love with Alex, a friend of Ned. However, her new romance ends up jeopardising Ned's career and their marriage arrangement.

After Ned throws her out of the house, Stacey decides to stay at Alex's house. The next day, Kirkland threatens to fire Ned and tells him to straighten out his life. Meanwhile, Eric takes Ned to a family gathering so Ned can tell Stacey his true feelings.

With the divorce looming, Stacey is looking for an apartment. Diana offers Stacey a job as dogs body, then accuses Ned of having feelings for Stacey.