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Tim (Martin Freeman) tells Gareth (Mackenzie Crook) that he's leaving the firm to go back to school and study psychology. Gareth tests Tim's skill by asking him, "What am I thinking right now?" Tim makes a couple of good guesses, but it turns out to be, "Will there ever be a boy born who can swim faster than a shark?" David (Ricky Gervais) is upset with Donna (Sally Bretton) when she shows up late for work, especially as she never came home the night before. His consternation grows when Donna makes it clear that she spent the night with a man. David interviews candidates for a new position as his assistant, despite the fact that he's been told to cut staff. David defends this action, saying, "Who's to say that hiring staff won't save us money in the long run?" and complains that "I'm doing my own stapling." He quickly decides to hire Karen (Nicola Cotter), a pretty blond, and asks her where she'll be going to celebrate, because he may turn up there with his friends. Gareth gives Donna a private seminar on "Hidden Dangers in the Workplace." Tim, having spent the day trying to convince people that he was only asking Dawn (Lucy Davis) out as a friend, decides to spend the evening out carousing with David, Gareth, and Chris Finch (Ralph Ineson). They go to a sleazy nightclub called Chasers, which Gareth says is "a fun place, but it's full of loose women." At the club, they run into Karen, who spurns David's feeble advances, and Donna, who publicly displays her newfound affection for Ricky (Oliver Chris), much to David's chagrin.