When Mrs Peebles has a heart attack Herman saves her life using CPR. She decides to sue him for breaking her ribs. Jay starts attending a group for sex addicts.
Herman agrees to go on a cruise to get over Elizabeth, but she's on the same cruise. Louise announces that she will loose her virginity to former Monkees member Davy Jones.
While dropping people off on his way home for Christmas Herman's car is stolen with Mr Bracken in it. Heddy and Herman spend Christmas with Louise and her family.
New exec Mr Decker is making everyone miserable so Louise and Heddy sneak into his office, copy and delete the speech Herman wrote for Mr Decker to give the next day. Louise loses the disk.