While in the middle of his contract negotiations, Hank threatens to leave the show unless he gets both a raise and his own golf cart to drive around the studio. Learning of his demands from network lawyer Sheldon Davidoff, both Larry and Arthur mercilessly poke fun at Hank behind his back. Meanwhile, although thanking Larry for some words of encouragement during the show, Hank clears out his office in preparation for leaving. While Larry and Arthur are invited to join the staff for his surprise going away celebration, Hank discovers that a stripper Phil and Jerry hired turned out to be a woman he once dated. Asking to meet with Jerry alone, Hank reveals that he knows they have been laughing at him behind his back, unaware that Arthur is listening on the speakerphone. However, when Arthur sneezes and Hank realizes their conversation has been overheard, he storms out after quitting his job. On his way to a final meeting with network executive Davidoff, Hank tells Arthur that he has an offer to co-host a cable talk show with Dick Cavett. However, Larry soon learns the network has decided no to renew Hank's contract and that the Cavett job was just a bluff by Hank to bolster his negotiating strategy. Going to see Sheldon and claiming he has an offer to host another late night show. Larry threatens to quit unless Hank is given everything he wants. However, after Hank accepts the compromise offered by the network, Larry is offended that they didn't take his threat of quitting seriously enough, even though he was bluffing about his other offer.
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