Even though the changes Larry's been forced to make have improved his sagging ratings, the network still assigns Kenny Mitchell as their creative liaison to the show. And upon arriving for his first day in the new job, Kenny makes it clear he has a lot of other changes in store, not least of which are taking away Larry's desk and getting more popular guests. Meanwhile, as his contract nears its expiration date with no renewal agreement in sight, Larry questions the commitment of his agent, Stevie Grant.
During his negotiations with network executive Roger Bingham, Stevie gets the message that Larry could easily be replaced by his regular guest host, Jon Stewart. Threatened with lost opportunities for other clients unless he cooperates, Stevie starts courting Stewart, too. Meanwhile, as Hank tries to get Kenny to rearrange the set once again, Arthur finally has enough of his meddling. But following his attack on Kenny, Arthur is certain that it's he, and not the new creative liaison, who will be fired. Meanwhile, Kenny and Stevie conspire to make sure they are taken care of even if Larry's contract isn't renewed.
Once Larry sees he's been betrayed, Arthur confronts Stevie. Yet, realizing his days are numbered, Larry surprises everyone announcing on the air that he'll be leaving the show at the end of his current contract. Empowered by his decision, Larry then demands to get his desk returned and fires Stevie before setting off on the final eight weeks of his talk show career.