Paul and Michael fighting over Rebecca.
Libby's new approach to life: respect and understanding.
Mark throwing a hissy fit because he thinks Kate is with Kyle.
Kate telling Mark that they should stay away from each other, for good.
Jade telling Kate she needs someone uncomplicated to be with: Kyle!
Kate tells Jade that her date with Kyle really isn't a big deal - and maybe it's a really bad idea. Jade tells her to embrace a new relationship.
KATE: Maybe I should give it a rest for a while, you know? I've kind of been jumping from one guy to another.
JADE: Yeah, but that's what they're there for.
Kate doesn't see any future with Kyle, and Jade reminds her that she's getting way ahead of herself - this is dating not a relationship! Relax, Kate, have some fun! No strings attached! Kate agrees, but remains unconvinced.
Michael, Karl and Toadie are laughing at the bar talking men stuff, and Paul sits at another table, working. Karl invites the guys to dinner; Toadie probably can't, but Michael accepts. They leave, but Toadie quickly pops over to see Paul to let him know that Oliver has hired the best of all attorneys in Portugal. Rebecca means serious business.
TOADIE: Don't choke on your Scotch; there's no- one here to help you out.
They all leave, but not before Michael offer Paul a glare.
Libby is meditating to incense - why doesn't she do this in her room? She is interrupted by a knock on the door from Paul who wants her to reinstate Lassiter's as the provider of school lunches, and he hands her some papers. He spots the incense.
PAUL: What hippy commune did you come from?
Libby tells Paul to speak to Michael about the contract, but Paul says Mike won't talk to him. Lib reminds Paul it's his fault that Lassiter's no longer has the contract, and he admits that he acted irrationally. He also tells Libby that he loved Rebecca - he was grieving and made a mistake.
He says he has making up to do in the community, and so hands her the papers for the lunches, telling her that it's a good deal for the school. She takes them.
Kyle's on the phone to Jade, asking if she's weird about any food, or has any allergies - he doesn't want to stuff anything up.
At another table Michael and Tash are having lunch when Libby shows him the papers from Paul. Mike refuses, point blank. Tash also takes a look and reminds her dad that Lassiter's lunches were good. Michael points out that the company were unreliable - and he won't associate anything at the school with Lassiter's.
Outside Harold's, Kate is on the phone to Kyle, telling him that, no, she has no allergies! Paul meets Libby outside, and she tells him she liked the proposal, but Michael didn't. Paul goads Libby into trying to get Michael to see sense, adding that he doesn't think people really can change. Which means Libby isn't the hippy she thinks she is.
(It also means that Paul doesn't think he can change. Your argument is invalid.)
Karl and Susan are play arguing over one of her articles in the paper when Libby arrives home, stressed about Paul. She explains that Paul wants Lassiter's lunches reintroduced, and she didn't fight for it. She's worried she's discriminating and not living in the moment. Karl and Susan roll their eyes.
LIBBY: In this moment, what is the right thing to do?
KARL: Ditch the gong.
Susan tells her daughter to let the whole new age thing go, but Lib's convinced it's enriched her outlook on life! Susan tells her the approach doesn't suit her, but Libby refutes it. It's not a phase, and she's not going back. Karl and Susan despair.
Tash thanks her dad for paying for lunch when Libby returns. Tash disappears. Libby wants to talk about the lunch proposal calmly and rationally, but Mike insists that the answer is still no. Libby says that Lassiter's has a better set up, whilst Charlie's is a smaller operation. She reminds Michael that Rebecca's gone, and he can't keep holding a grudge against Paul.
Michael says he won't forgive Paul, so Libby lectures him on letting go, seeing as the fight for Rebecca is over. She says the contract is a chance to move forward. Ugh. You're boring me now, Lib.
Kate wonders if Lucas has seen her keys - she's going off on a date. Lucas comments that she doesn't muck about, and wonders why she isn't all dressed up for the date. Kate says she doesn't want to make a big deal of it before going to her room.
Lucas answers the door to Kyle and asks about his plans. Kyle says it's casual before telling Kate she looks great. Lucas smiles knowingly as they leave.
Kyle and Kate are walking across the lake for a picnic, and Kyle suggests a movie for later. But Kate's a bit distracted, and is playing with the necklace that Mark gave her. She apologises for wearing it, but Kyle doesn't care - he's made her amazing sandwiches!
Kate examines the sandwich whilst Kyle tells her about his day at work. Cut to images of other couples and friends playing Frisbee. Cut back to Kate and Kyle laughing about Lou's loudhailer. Kyle presents her with some sticky date pudding, and Kate is surprised that he remembered. Kyle comments that there's nothing he could forget about her, and Kate suddenly realises that Kyle actually really likes her; she's not being fair.
She passes on the pudding, and says she has to help Sophie with a school project. She thanks Kyle for the picnic and leaves. Kyle's gutted.
Tash is complaining to Michael about having to go to dinner with the Ks - they're all old. Michael lets her off. They spot Andrew and Paul across the road, and Tash comments to her dad that she actually likes the Charlie's menu at school.
Libby finishes meditating and hits the gong. Karl and Susan are exasperated. Libby suggests to her dad that he should try it - he gets very stressed. Karl retorts that he already knows a good stress reliever, and reaches over to kiss and flirt with Susan!
Libby answers the door to Michael who's here to see her. He's been thinking about the proposal - and it's the better option for the kids. But Lib has to deal with it all, and he doesn't want anything to do with Paul. Libby claims her victory.
Jade is playing guitar hero when Lucas gets home, closely followed by Kate. She tells them that the date was sweet, but Lucas wonders why she's so gloomy. Kate admits that Kyle actually likes her, and so it's no longer simple. She's not ready for someone to be into her now. She's going to have a bath.
Jade chats with Kyle over drinks.
JADE: So, is that a record for you?
KYLE: Well, no. I once asked a girl out, she threw up and ran off.
KYLE: I later found out she had food poisoning.
Jade asks Kyle what went wrong, and he admits that he gave her a few looks, and remembered stuff about her that Kate didn't like. Jade thinks he should give her another go, but he'd rather have her as a friend than nothing.
Over at another table Libby takes the signed contract from Paul. He comments that he admires how she's put unpleasantries behind her and is focusing on the future. She tells him she won't be his 'go to' girl whenever he needs anything.
Libby leaves and Andrew comes over for a drink. Paul tells Andrew that the contract with the school is the start of his revenge on Michael - and with Libby on his side, Michael Williams is finished.
Libby and Michael are seated for dinner, as the Ks serve up.
Andrew orders food at the bar, whilst Paul taps away conspiratorially on his laptop.
The group banter about the wine, and Libby toasts a good year, personally and professionally.
Paul taps away - completing an application form for the position on the school board of directors.