

Jimmy and Sandy run into a roadblock in their effort to re-open the Balboa Lighthouse restaurant. Summer and Seth take it upon themselves to finally make Marissa feel more at home at Jimmy's. Everyone is shocked when Caleb makes a proposal, which sparks a near-fatal accident for Luke. Marissa, and Sandy and Jimmy each strike deals with Caleb. An old O.C. friend moves away.

Faced with the prospect of life in a group home, Ryan decides to run away from Newport, but Seth and Marissa convince him to stay and hide in a vacant building project. Jimmy discusses his recent financial woes with Kirsten, and she offers a solution. After Luke witnesses a close encounter between Marissa and Ryan, he confronts Ryan and a fight breaks loose. Ryan's presence in Newport is exposed in a big way, and two arrests are made.