- Growing dissent within the group forces Garrett to suggest a little bonding exercise aboard a sailing ship, which turns out to be more turbulent than he could have ever imagined.
- The Head Starters receive a stern warning from Garrett to get along or their projects will be jeopardised. Garrett enlists the help of an old Uni mate Dom who runs group "Netbonding"Net sessions on board his yacht-a replica of Captain Cook's Endeavour. One look at Dom and Basia's keen to follow him anywhere. They soon learn they're all required to spend a few days on the yacht. Dom proceeds to give them all a tough time apart from Basia, who, much to Kyle's chagrin, flirts with Dom mercilessly. By the end of day one tensions are high and the exercise isn't helping. Upon arriving for their second day, the group discover that Basia has stayed the night on the yacht with Dom. Kyle is furious with her. Dom's behavior toward Basia changes and he treats her worse than the others. Basia is humiliated. The boys band together to teach Dom a lesson and orchestrate a plan to knock him overboard. Harmony is again restored, much to Garrett's relief. In addition he receives a fax from Dom commending their unorthodox yet successful performance. Clare and Loc continue their relationship in private. Loc pushes for it to go public but Clare remains cautious of the effect it may have on Patrick. They quarrel but after the antics of their day on the water Clare surprises Loc with a big pash in front of everyone. Kyle and Seth struggle with a technical problem in the gearing system. Kyle tells Seth to fix it in a hurry and the two end up in an argument. Using the winch system on the yacht triggers Kyle to think that they've been making the design too complicated. Seth figures it out and they remodel the design and patch up their friendship.
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