Michael starts monitoring the emails sent out in the Dunder-Mifflin workplace, upsetting the employees. Meanwhile, Pam believes that the relationship between Dwight and Angela is more than just worker to worker, Jim throws an office BBQ at his house in order to show his roommate the kinds of people he deals with everyday, and Michael, after annoying everyone at his improv classes, crashes Jim's party with a terrible karaoke number.

Dwight plays the role of Volunteer Sheriff after finding half a joint in the Dunder Mifflin parking lot leading to an investigation. Pam gives Jim a play challenge where he must be silent until he gives Pam a can of Coke.

Jim felt awkward at the morning meeting when his boss put him charge of managing Karen and her responsibilities. The other co-workers looked at Jim as a kiss ass. Later on, he flirted with Karen in the break room and told her she shouldn't work until she found her favorite snack chips.

Michael was in the holiday spirit and couldn't wait to share in it with his girlfriend, Carol. He had bought two tickets to paradise, hoping to whisk her away on a romantic vacation to Jamaica. Carol came by the office early to have a talk with Michael and it didn't go well.

Michael was shocked when he received a call from Corporate wanting him to interview for a position. Michael was happy, but he also had other things on his mind. Beach Day was coming up and he was taking the crew out for some fun in the sun. Not before reminding Toby he couldn't go because somebody had to stay in the office.

Michael gleefully anticipates attending the company's Web-site launch party in New York. Meanwhile, Angela arranges a bash in Scranton, while Dwight gets wrapped up in a real paper chase: He tries to sell more paper than the Web site.

Toby leaves Dunder Mifflin, and Michael plans a huge goodbye party... out of joy. Angela refuses to help with it, so Michael turns to Phyllis. Dwight and Meredith harass Holly, their new HR representative.

The office is on eggshells because Andy still hasn't found out about fiancee Angela's affair with Dwight. When Michael spills the beans, Dwight and Andy take matters into their own hands. Meanwhile, Michael is nervous about being called down to corporate for a meeting with Wallace.

At the company picnic, Michael and Holly are reunited for the first time since their split. The rest of the staff competes in games, such as the volleyball tournament.

David Wallace comes bearing the news that not all the staffers will receive a raise this year. Jim pushes Dwight to the limit and causes him to form office alliances. And Pam decides she wants only cash as a wedding gift.

Michael hates the changes that Dunder Mifflin's new owner is implementing, so he turns to David Wallace for advice. Jim and Pam find the perfect day care center, but Jim's mistake threatens to ruin the interview.