Karl talks to Debbie about how she's doing on probation and what happened with Luke. She apologises for what she did and says she didn't understand the responsibilities of the position then but she does now. He says he has to be absolutely sure that's the case but she promises she has learnt a lesson and he agrees to give her another chance.

With Helen's assistance, Phil admits to Angie that the financial advice was all a cover for the romantic novel writing...which she thinks is hilarious!

Karl shows Libby an ad in the paper for a vocational orientation course for Year 12 students that is being run in the mid-term break. She says she hasn't got time to do it and she knows what she wants to do anyway. Susan and Karl try to encourage her but Libby gets very defensive and says she knows what they're saying - she's made the wrong career choice and is destined to fail. She thanks them for their support! They're left wondering what's the matter with everyone at the moment.

Danni gives Luke a present - a new hat she designed which looks like it should belong on Henry VIII. Next day, Luke gets up and puts his new hat on. Danni fixes it on properly for him and the two end up kissing. When they break apart they are both a bit taken aback. They carry on with breakfast and things get uncomfortable.

Libby goes to see Helen and says she's seen the proofs of the article about her working as Philippa Martinez. Helen turns to Philip who is forced to admit again that he's the novelist. Helen says she was the decoy.

Luke sees Karl and checks out ok. Once he's gone, Karl tells Debbie that he seems ok but she goes on about how Danni is tiring him out and has him running in circles. She thinks he'd be better off living somewhere else but Karl says he's fine.

Angie takes Lou over a casserole and she tells him about the shares and the $25000 profit she made. Lou says Phil's a hot shot advisor but as Angie almost lets slip that he's actually not, the phone rings. It's Max - he tells Lou that he thought he missed Cheryl at the airport but the flight was diverted elsewhere and now she's gone missing. Lou is very worried and Angie tries to comfort him.

Debbies wanders past Lassiters Lake and spots Luke and Danni having a picnic. She watches them getting on like a house on fire before walking off.

Susan and Libby go to see Phil and tease him about his writing. Libby promises to talk to the editor about the article they were running as long as Phil signs her book!

Luke and Danni run into Debbie at The Coffee Shop and she talks with Luke alone. She asks if Danni is looking after him and he says she's treating him like he's healthy which is what he wants. Debbie tells him that Danni isn't right for him, she's just making him more run down. He tells her it's not her problem but she says she cares about him. He says that's nice of her but he's doing alright on his own. Debbie tells him that she thinks she loves him. There's an uncomfortable pause and he tells her he's flattered and it's nothing to do with his condition, but he just doesn't feel that way about her. She asks if he feels like that about Danni but he says no - they're just mates. He adds that it wouldn't be fair of him to start anything with someone at the moment.

Karl adds to the teasing but tells Philip he's just jealous. Libby says he should see what Phil wrote in the cover of Susan's book. Susan asks if he'll address some of her students, he tells her he'll give it some thought when she threatens to show Karl the book! In the middle of the jollity, Lou calls around looking for Marlene, he says he's just had a phone call from Max in Ecuador - Cheryl is missing, she was on a bus and it got held up by gunmen, they think she's been taken hostage along with the other tourists but they don't know where she's being held, or even if she's alive...