The governors have arrived at Waterloo Road to inspect the merger as the drama series set in a comprehensive school continues. Little does Rachel realise that Max intends to spend the day convincing them to fire her.
Rachel and Max have a showdown in front of the governors, each blaming the other for the merger's failings; it's clear that they're not capable of working together. Sick of fighting a turf war with Max, a defeated Rachel hands in her resignation, believing her departure will at least provide some stability at Waterloo Road.
Elsewhere, there's a carnival atmosphere as the pupils enjoy the last day of term and prepare for the Waterloo Road Has Talent contest. Denzil break dances, Josh and Luke play guitar and Philip's controversial comedy act hints at Max's temper.
Grantly reaches his 25th anniversary as a teacher but, upon learning that there is no planned celebration, is morose all day. Steph persuades Bolton to write a street poem about Grantly and his performance impresses the entire school.
After his act, Philip is dragged to the cooler where Max bullies him into keeping quiet about the physical assault. Kim is suspicious about Philip's behaviour and questions him until he reveals the truth – Max hit him. As Max smugly announces Rachel's departure, Kim storms into the staff room to reveal Max's methods. Could this be the end of Max's teaching career?
