Dyson announces that Allie has won the state literary fellowship but Allie decides to turn down the award after having just learned that she is pregnant. When he is told by Danielle, Matt, who is now seeing Stassy, tries to do the right thing only to have Allie push him away. When Matt and Dani later observe Allie talking with Tom, they come to the conclusion that it was Tom who got Allie pregnant, not Matt. Enraged, Matt assaults Tom in the schoolyard and soon finds himself before Dyson trying his best not to explain why he hit Tom. After learning that Tom has gotten engaged to his girlfriend Vicki, Allie goes to Dyson to explain what has been going on in an effort to protect Matt from being expelled. Allie's future is settled when Ronnie and Dyson convince her to accept the fellowship, which will require her to leave for London immediately. Meanwhile, Tom's teaching career is all but over after he is suspended pending an investigation of his relationship with Allie. Charlie decides to organise a party for his impending birthday but a lack of support from his friends quickly puts an end to his plans. Unbeknownst to Charlie however, Katerina and Bolton plan a surprise party for him at the Shark Pool. The event goes off as planned but is altered to serve as a going away party for Allie as well.
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