Ned's current client is a wealthy fashion designer who is also gay. Stacey, upon meeting him, tries to get whatever merchandise she can from him. When he takes her swag home, he sees their living arrangement and thinks that Ned is gay and Grace is Ned's beard. Upon learning this, Ned is worried how this will affect their business relationship. When Ned tries to tell the designer that he's straight. The designer doesn't believe him, so Ned pretends that he is gay and that his partner is Eric.