Eric and Donna sleep together but don't have sex. This prompts many jokes from the guys, convincing Eric he must do it the next time. Seeing money is tight in the Forman home, Hyde goes out to find a job at a photo-developing store, where the hippie Leo is introduced.

Red's birthday turns sour when Bob and Midge show up for dinner, but with their own dates. Eric thinks Donna doesn't confide with him as much as she does with others, while Jackie suspects Kelso is keeping something from her.