Ep 4. The Captain

Jess and Nick are at the bar discussing the fact that they have yet to define their relationship. They are interrupted by the arrival of a man named Franklin, who informs them that he is there to take them to a party on a yacht owned by "the Captain," his friend and Jess' new boss. Jess is thrilled to be going, but Nick is less than enthusiastic.

Schmidt, meanwhile, is attempting to get back in the good graces of his boss, Emma. He shows up at her office with coffee and pastries, but she seems unimpressed. He attempts to win her over by offering to help her with her charity work, but she turns him down.

The gang arrives at the yacht party and is introduced to the Captain, who immediately takes a liking to Jess. He invites her to dance, leaving Nick feeling jealous and left out. Jess is oblivious to Nick's feelings and continues to enjoy herself. Winston, meanwhile, is trying to hook up with a woman named Daisy, who is also at the party.

Schmidt, who is still trying to win over Emma, decides to donate some of his money to her charity. He enlists Winston's help to make the donation, but they accidentally end up donating $5,000 instead of the intended $500. Emma is thrilled with the donation and thanks Schmidt, leaving him feeling quite pleased with himself.

As the night wears on, Jess continues to dance with the Captain, much to Nick's annoyance. He decides to confront her about their relationship, but she tells him that she's not ready to define things yet. Nick storms off and ends up accidentally stabbing the Captain's hand with a shrimp fork. He is immediately thrown off the yacht, leaving Jess feeling guilty and upset.

The next day, Schmidt discovers that the $5,000 donation was made using the company's credit card, not his own. He is fired from his job and left feeling humiliated. Jess, meanwhile, tries to make things right with the Captain by visiting him in the hospital. She discovers that he has a fiancée and is quite taken aback. The Captain tells Jess that she needs to figure out what she wants before pursuing a relationship with Nick.

In the end, Nick and Jess have a heart-to-heart talk and finally define their relationship as "just friends." Winston learns that Daisy is actually a prostitute and decides to give her some money instead of trying to hook up with her. Schmidt, meanwhile, tries to win back Emma's favor by offering to work for her charity for free. She agrees to give him another chance.

The episode ends with the gang back at their apartment, realizing that, despite the drama of the night before, they're all still good friends and have each other's backs.