Kikuhiko and Shin attend the shin'uchi ceremony and Shin successfully performs the rakugo which is the president's speciality. Kikuhiko goes to say farewell to Miyokichi who is distraught and become suicidal. Meanwhile Yakumo berates Shin for performing the president's speciality, and they argue about the future of rakugo, maintaining the tradition versus changing with the times. Yakumo decides to give his name to Kikuhiko - Shin become angry and is expelled. Later that night he encounters Miyokichi and they console each other. Yakumo offers his family name to Kikuhiko who rejects the offer, saying it should go to Sukeroku (Shin) because he is a better performer. Meanwhile Shin and Miyokichi are living together and she is pregnant. Shin goes to say goodbye to Kikuhiko as he and Miyokichi plan to move to the country, financed by money Miyokichi stole from the geisha house.