Simone and Paul discuss their feelings for each other and what they're going to do about Tad. Felicity leaves Sean and his friends by the side of the road and walks off.
Joe picks up Felicity (she called him) and asks her what's going on. She doesn't want to explain there and then and so they get in the car and head back home. At home, Felicity tells Joe everything and at last, it's the truth. He tells her that he's glad she made the decision to come home and not stay at the beach. Later, he tells her that he can't stand to see her get hurt - but she's always been an independent spirit and he wouldn't want it any other way.
Tad and Simone are chatting at the Coffee Shop but Simone is distracted. When Paul arrives, she makes an excuse and leaves abruptly. Back at Number 24 afterwards, Tad probes Paul to see if he knows what's up with Simone. Paul lies and tells him he has no idea. Tad says it's fine, he'll just have to put up with it.
Sean goes to see Felicity and they talk. She tells him she knows he's sorry, but they'll have to break up - there's a problem with the age difference and her being at home. He tells her that it's fine. She says it would be if he didn't have a problem with it but he obviously does. They say their goodbyes and he leaves just as Paul turns up. She tells him that she's broken up with Sean and he asks if she's ok. She says she is, so he asks her if they can talk because he isn't. She invites him inside. Paul tells Flick about his feelings for Simone - he says he thinks she's great but he couldn't do it to Tad. Felicity advises him not to mention anything to Tad and to tell Simone that nothing can happen between them. She says Simone should tell Tad if she's not interested in him.
At the Coffee Shop, Simone and Paul discuss their relationship and she says she can't stop thinking about him. Tad comes in and asks Simone why she's not doing the German homework she said she'd have to work on. She says she was doing some food shopping with her Mum and bumped into Paul, so they stopped for a quick chat. Tad says it's weird that she can stop everything for Paul but won't even give him 5 minutes on the phone. She makes up another silly excuse to leave and walks out. Tad is confused and Paul tells him he's got something to tell him - he explains what's been happening between him and Simone. Tad is not at all impressed and gets up to leave. Paul tries to stop him and Tad asks him if he kissed her - Paul's look confirms his suspicions. Tad pushes him into the table before walking out. Back at Number 24, Simone has called Tad to break up with him. Tad tells Paul that he can have her.
Toadie, Lance, Steph and her friend Kate all have a drink at Lou's Place before the work function. Lance is loving his 'date' with Steph, making Toadie insanely jealous. Toadfish even tries to tell Kate how great Lance is to try to get her interested! The work party is at the bowling alley and Kate and Lance team up - Steph remarks that she's taken a bit of a shine to him.
At Lou's Place after the bowling alley, Kate talks to Steph about Lance and Toadie - asking her which one she wants. Steph asks what she's talking about. Kate tells her to open her eyes, they're both besotted with her.