On the last day of term the governors arrive to assess the merger and Max is out to get rid of Rachel. After they row publicly she agrees to resign for the stability of the school. At the Waterloo Road's Got Talent contest organized by Ruby Bolton delivers a well-received poem celebrating Grantly's quarter century in teaching and Philip's stand up,hinting at Max's bullying, goes down a storm with everyone - except Max. He threatens the boy again to keep quiet but Kim,suspicious of what is going on,learns the truth and publicly exposes Max's underhand dealings. Thus it is him and not Rachel whose days at Waterloo Road are over.
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