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Their senior year is winding down and the kids from Laguna Beach are just getting started for their summer of fun...and drama. Lo, LC, Morgan and Christina are the most popular senior girls in school. The four get together one gorgeous afternoon to discuss how they can begin their last summer together. They decide on a fashion-themed formal at the luxurious Surf and Sand Hotel and they call it "A Black and White Affair." Now it's time to figure out who should be on their guest list, and of course, who should not.

One name that some of the girls aren't so comfortable with is Kristin. She's a junior and is dating Laguna's most-eligible bachelor, Stephen. Stephen is one of the hottest guys in town and is friends with practically everyone, especially LC. So begins the love triangle: Stephen and Kristin are pretty-much boyfriend and girlfriend. However LC and Stephen have been friends ever since they were little kids. LC wants to take Stephen away from Kristin and have him all to herself, making it impossible for Kristin and LC to get along. Get it? Good.

It's seven o'clock on Friday night, and Kristin visits Stephen at work. Stephen mentions that his best friend Trey is hosting a barbeque party. Kristin is not keen on attending a party where a run-in with LC is likely. Stephen makes it to Trey's BBQ later that night, where he meets up with LC, who is spreading the word about the upcoming Black and White Affair. As the night goes on, Stephen and LC exchange alluring looks.

The next day, LC invites Stephen to come and see her new house, which is still under construction. They talk about life, friends and college. Meanwhile, Kristin and her best friend Alex paint their toenails in preparation for the Black and White Affair. Both get giddy over the prospect of how cute Stephen and Kristin's kids would be. When Kristin later meets up with her friend Talan, another junior, he questions her relationship with Stephen and she reveals that she doesn't trust him around LC. Later that night, Stephen and Kristin go out to dinner. With Talan's words still fresh in Kristin's mind, she accuses Stephen of lying about where he was the night before.

After dinner, Stephen meets up with close friends Dieter and Trey, and admits to them that he sees Kristin as more of a "good hookup" while LC is more of a "girlfriend" girl.

It's time for the Black and White Affair to begin, and the girls are all decked out in black. Kristin is the only girl to show up wearing a white dress, which somehow strengthens LC's disapproval. But Kristin's party doesn't last long. Kristin had only intended to make a brief appearance at the party, and is frustrated with Stephen because he wants to stay longer. LC and Stephen exchange looks with each other several times during the party, and it is obvious that his relationship with Kristin might not last much longer.

In this episode of Laguna Beach, things really start to heat up--Southern Cali style. The love triangle between Stephen, Kristin, and LC is becoming more obvious, and each of them is really starting to feel the pressure.

This episode opens with LC and Lo making a trip to their favorite sanctuary - the mall - to take their minds off boy problems. They end up in the M.A.C. store, where they have their makeup professionally done for the many festivities they have planned for the evening.

Christina calls her best friend Morgan from the road to announce her acceptance into SMU for the fall. Morgan congratulates Christina and tells her she has yet to open her own letter from BYU--the only college she applied to. The two meet on the beach, so they can read the letter together. Morgan talks about how much she longs to go to SMU and leave her life in "the bubble" behind her. She talks about how she cannot wait to get away from "the party scene" as well as all the "stupid kids screwing up on their parents' money." As Morgan finally opens the letter and begins to read from the page, we find out she has been declined admission to the only college she applied to. What will she do now? Like a true best friend, Christina tries to comfort Morgan and convince her everything will be alright - contrary to Morgan's belief that this "totally sucks."

Kristin and her friend Jessica go to the grocery store to pick up everything they need for the dinner they will be cooking for Stephen and Jessica's boyfriend Dieter at Dieter's house later on that evening. As they walk up the steps to the house, Kristin wonders if Stephen will be in a jealous mood. (According to Kristin, whenever she isn't "all over" Stephen, he tends to freak out, and that really pisses her off.)

Back at Dieter's house, the verdict is in on Kristin and Jessica's dinner: Not good! Stephen honestly admits he does not like the food, and Dieter shamelessly trips and asks why it "tastes so bad." As if the unsatisfactory food wasn't enough, things start to get tense as Kristin's cell phone begins ringing nonstop. Looking quite perturbed, Stephen asks Kristin why she just does not turn off her phone. Kristin shrugs it off. When the phone continues to ring, she finally leaves the table to answer it. Now, Stephen is the one who looks pissed. Unfortunately, the group's cozy little dinner for four didn't quite turn out the way everyone had planned.

The evening culminates in a bonfire, and everyone from the clique is present. Of course, this poses a small problem, considering the awkward relations between Stephen, Kristin and LC. With relations between them still tense from last night's dinner, Stephen and Kristin discreetly have a quasi-argument. Kristin gets frustrated and says she doesn't want to talk about it. While Kristin has stepped away, Stephen and LC have a little talk. Stephen tells her how he can't wait to "get the hell out" of Laguna Beach. He also tells LC how he doesn't regret how they once hooked up because he feels they have become better friends because of it. LC says it was fun while it lasted, but she said she could have done without all the drama that ensued because of it. The entire time of their conversation, Kristin looks on from afar. Trouble in paradise...

As LC, Lo and Jen nibble on their fries at a local Laguna Beach fast food joint, the popular subject known as Stephen comes up in conversation. Jen and Lo ask LC what's the story with Stephen and Kristin. LC states at last night's bonfire Stephen spent most of the time hanging with her and Kristin wasn't talking to Stephen. Jen makes a statement that LC and Stephen will have the "prettiest babies" and "they'll be the most popular ones at school." LC and Lo laugh at Jen. LC in a sarcastic tone replies to Jen's comment "Sweet."

Meanwhile, Kristin, accompanied by her best friend Alex and Sam (Kristin's crush), head out to Newport to shop for a new car. Kristin pulls into a car dealership that has a fleet of slick German and Italian sports cars. Kristin and friends check out numerous sports cars all the while admiring the fancy leather interiors. After Kristin, Alex, and Sam had their fill of new car shopping, the trio head back to Laguna Beach. On the way back, Kristin's car begins to make strange noises. Eventually, a cloud smoke begins to rise from the hood. Kristin stops her car and exclaims "My car is so done-zo!" Unfortunately, Kristin's car is stuck in the middle of a lane on the highway back to Laguna Beach. A massive traffic jam ensues as a result of Kristin's breakdown. Eventually a tow truck and Kristin's angry Dad show up to help her out.

Later that day, Stephen stops by Trey's house to see what's going on. Trey tells Stephen he's going up to Los Angeles to check out a fashion show. Trey invites Stephen and LC to come along. Later on, in LA at the fashion show, Trey, LC and Stephen sit right next to the runway. Their seats give them a great view of the show and to Stephen's liking, an awesome view of the "super hot models." A slender and attractive model catches the eye of Stephen. At the post-fashion show reception, the model tells Stephen "You're super gorgeous." Stephen finds Trey and LC and tells them what just happened. Trey decides to take a picture of Stephen with the model. LC looks on with much discomfort.

Trey, Stephen and LC attend the fashion show after-party at a club called the Spider Room. Upon arrival, LC states she feels uncomfortable with the surroundings and wishes to leave. Trey and Stephen convince her to stay and have some fun. As LC begins to loosen up, Stephen meets up with the model. Stephen and the model dance really close all night. LC watches Stephen and the model grind to the music from afar. Eventually, the sight of Stephen with the model stresses LC out. She leaves the club, goes to her car and sits behind the wheel. LC calls up a friend and tells her how she feels right now. Eventually, a bummed out LC drives off into the night, chatting with her friend.

The next day in Laguna Beach, Stephen and Kristin sit down to dinner at a restaurant. Kristin asks Stephen about the fashion show. Stephen goes off telling Kristin about the "super hot models" and how much fun he had at the after party. Stephen asks Kristin what she did, Kristin replies she "went out with Zach." Suddenly, Stephen's happy-go-lucky demeanor changes to a sullen one. Stephen bombards Kristin with who, what, when, where questions. Kristin nonchalantly answers Stephen's questions but eventually then the conversation comes to an awkward silence. Stephen breaks the silence with "So what do you want to do after dinner? You wanna go home?" Kristin replies "No, whatever." Stephen and Kristin finish their dinner and drive off into the night together.

It's just days before Spring Break and Christina and Morgan are planning to vacation in New York City. Before Christina leaves, her mom surprises her with a birthday gift: an audition with a Broadway casting director. Christina is very excited and can't wait to go to New York. Later that night, Christina and her friends celebrate her 18th birthday at Joe's Crab Shack. The girls are having a great time and notice a couple "hot guys" at another table. Kristin decides to write a you-are-hot note and has the waitress deliver it to one particular "hot guy." The "hot guy" receives the note and after reading it, walks over to the birthday party table. Kristin engages in giggly, light conversation with the "hot guy." Christina exclaims to the party, "How come she gets the guy at my party?"

Meanwhile, LC is having dinner with her family. LC's dad tells her that he's not happy with her failing grades. LC is grounded until she can improve her grades. Later, Lo stops by LC's house and attempts to take her out. Lo tries to convince LC's dad to allow LC to hang out with her, but LC's dad remains firm in his decision. LC states to her parents, "This is you ruining my senior year." LC's dad replies, "No this is you ruining your senior year. If you weren't failing, you can go out." Lo adds, "They do have a point, No failing, go out." A frustrated LC says to Lo, "You suck."

The next day finds Lo and LC cruising around the mall and talking about how "retarded" Christina and Morgan have been acting lately. While in a makeup store, LC lightly applies lip gloss and asks Lo, "Hey look, guess what color I'm wearing? It's called two-face." An amused Lo replies, "I know somebody just like that."

Meanwhile, Christina and Morgan are sitting in the nail salon reminiscing about how fun the party was last night. Morgan wonders if they should have invited LC and Lo. Right at that moment, in walks Lo and LC. Lo and LC take a seat in the waiting area. Lo notices Christina's earrings and says, "I like your earrings Christina, were they a birthday gift?" Christina replies, "Yes, Gary gave them to me; they came with a matching green shirt." Lo, with a slightly sarcastic tone, says, "Of course, a matching green shirt." Morgan interrupts the tension with, "Guess what Christina gets to do in New York?" Christina tells Lo and LC that she has an audition with a casting director in New York City. Lo and LC act excited for her.

Afterwards, Christina and Morgan arrive in New York City. The girls check into their hotel and admire their view of Times Square. Later that night at a diner, Morgan asks Christina, "What if you do get the part--are you going to move out here?" Christina answers, "I don't want to talk about it." Morgan keeps on pushing Christina to answer the question but Christina just replies with "I don't want to talk about it." The next day, in the casting director's waiting room, Christina gets extremely nervous. Finally, Christina is called in to audition and sings a song with all her heart. Afterwards, the casting director gives her some constructive criticism but ultimately rejects Christina. Christina walks out with an uneasy smile and meets Morgan by the elevators. Morgan asks, "How did it go?" Christina smiles and says, "Let's go sightseeing."

It's just days before the cast of Laguna Beach head down to Cabo San Lucas, Mexico for their spring break. While sitting at the local nail salon, Kristin and Alex excitedly talk about their upcoming trip. Alex asks Kristin how her relationship is going with Stephen. Kristin replies with a nonchalant "same as it ever was." But then Kristin reveals, during her stay at Cabo, she wishes to "hook up" with her current crush, Sam. "What happens in Cabo, stays in Cabo," says Kristin.

Meanwhile, LC and Jen are shopping for new bikinis to wear for spring break. Jen asks LC who she thinks is going to hook up on this year's Cabo trip. LC replies, "Cabo hook ups are so random." LC picks up a bikini and notices it looks familiar. "Who has a bikini like this one?" asks LC. "Kristin," Jen replies.

On the other side of town, Kristin, Alex and Morgan S. are shopping for bikinis as well. The girls are having a great time, as they pop in and out of the fitting rooms, modeling bikinis for each other. Later, Morgan S. and Kristin lay down on tanning beds to get tanned for their Cabo appearance. Kristin calls Morgan S. on her cell phone while lying on the tanning bed. The girls engage in small talk and eventually, Stephen comes up in conversation. Kristin says Stephen isn't sure if he is going to hang out with her in Cabo. "So I don't know, I don't know what to think," says Kristin, "He's playing golf and then he's supposed to call me."

Stephen, Trey and Dieter are playing a casual game of golf at the Aliso Creek Golf Course. Dieter makes a $50 bet with Stephen that LC will be in their room by the end of the night. Stephen proclaims, "No way, no way," and accepts Dieter's bet. "You just lost $50." says Dieter.

Later, the kids arrive at Cabo San Lucas, Mexico and check into their resort luxury hotel. Dieter, LC, Jen and Stephen are walking to their rooms. Dieter jokingly asks the girls, "Let's just have a big orgy. Are you guys down? Now that we're in Cabo, let's just @#$%." Jen and LC ignore Dieter and head off to their hotel room.

Later that night the kids are partying at a local Cabo club. Suddenly, Kristin jumps up on the bar and begins dancing. Stephen disapproves of Kristin's actions and watches her with much contempt. After dancing on the bar, Kristin proceeds to hang all over Sam. With much anger, Stephen quickly moves to where Kristin is standing, grabs her by the arm and pulls her over to an empty part of the club. Stephen and Kristin exchange many heated four letter and five letter words. Stephen, really pissed off at Kristin, storms out of the club.

The following night, the spring breakers are sitting down to dinner at a large table in a fancy restaurant. Stephen and Kristin are sitting on opposite ends of the table. Stephen downs his drink at a rapid rate. LC, sitting next to Stephen, tries to slow Stephen down as his drink begins to take its toll. In an attempt to make up, Stephen mouths the words "I Love You" to Kristin, only to be met by her mean mocking glare in return. At the end of dinner, LC and Stephen disappear together.

Spring break is over and the cast returns to Laguna Beach. Kristin is sitting with her friends at Wahoo's Fish Tacos. Kristin explains to her friends the events that happened in Cabo. Later, LC and Lo are chatting over milkshakes. Lo asks LC if she hooked up with Stephen. LC replies with a grin "What happens in Cabo..."

With the scandalous events of Cabo spring break behind them, the clique hits San Diego for a blink-182 concert. LC and Lo are the first to arrive, and they chat while waiting for the concert to begin. Suddenly, LC spots Stephen and Kristin making their big entrance into the venue. She calls out to the pair, but neither Kristin nor Stephen seems to hear, and the pair walk straight past LC and Lo without even speaking. The girls laugh it off and blame the dis on Kristin. After the rebuff, LC and Lo get excited as they spot Dieter and Trey walking toward them. Shortly after, the concert begins, and everyone enjoys the sounds of blink-182.

After the concert, the group heads toward the parking lot to get in their cars. Out of nowhere, a guy--who happens to be about three feet tall and extremely belligerent--verbally assaults the girls in the group with rude comments such as "Where the sluts at?" and "I got a big d---!" Extremely ticked off by the guy's vulgarity, Trey gets belligerent himself, and the two men exchange words with one another. Stephen steps in and suggests that everyone just go separate ways. As they all walk away from the altercation, everyone laughs at the spectacle that just occurred.

The next day, Kristin waits at her house for Stephen to pick her up to go to the gym. Her younger brother Mike starts asking her questions about her and Stephen's relationship. Mike asks her why she is "still hanging out with him" (since they supposedly broke up in Cabo), and questions the nature of their "friendship." Kristin just shrugs it off and says she likes spending time with him.

Across town at an art gallery, the others help Trey prepare for his fashion show benefiting Active Young America--a group he founded to help increase social awareness and activity amongst young people. While LC, Lo, Polster and the others help Trey with the stressful preparations, Kristin and Stephen do sit-ups together at the gym. Finally, after some major working out, the two make it in time to watch the show. As LC and Lo strut their stuff down the runway, Kristin can't seem to hide her aversion toward LC and makes rude comments about LC's modeling abilities.

The next day, Kristin meets Alex for coffee, and the two discuss Kristin and Stephen's rollercoaster relationship. Kristin says that for the time being "things are really good," and she admits she really loves Stephen. Later on that evening, Stephen and Kristin go on a romantic date that includes a
picnic on the beach, miniature golf and a long, passionate kiss.
While Stephen and Kristin enjoy each other's company, the other girls gather at LC's house for "O.C. Night." They talk about how "stoked" people (outside Laguna Beach) are to find out they "actually live in the real O.C!" According to them, saying you're from the O.C. is "the new pick-up line."

It's two weeks before prom and the Laguna Beach high schoolers are trying to figure out who they will take on their big night out. While hanging out at Morgan's house, Kristin shares that she has a secret admirer. Her admirer is leaving notes, asking her to the prom. Kristin and her friends make jokes and speculate on the identity of the "stalker." Later, a limousine picks up Jessica after school. The limo takes her to a park where Dieter is waiting with a dozen roses and a big sign that reads "Jess, Prom?"

Morgan comes home and finds her room festively decorated with a short poem written on her glass door. The poem reads, "Of all the fish in the sea, prom with me? Love Gary." Immediately, Morgan calls Gary and gladly accepts his invitation.

Trey invites his date to his backyard where on a bed sheet are rose petals and candles that spell out "Prom?" Trey's prom date glad accepts his request.

Upon arriving at her house, Kristin finds a trail of flowers leading to her door. Kristin follows the trail into the house only to find a shirtless Stephen with the words "Prom?...please" written on his chest. Apparently, Stephen was the secret admirer and Kristin was fooled the whole time.

Finally, prom day arrives and the cast gets ready for their big night. A super stretched out Hummer limo picks up the kids at their houses and takes them to Trey's house for a pre-prom party. Later, they pile into the limo and head to the prom. They dance and party the night away and eventually get back into the limo for their ride home. In the limo, Stephen and Kristin get into a deep conversation about the future of their relationship. Kristin feels that they will soon end it all, since Stephen will be away at college, whereas Stephen feels that they will still be together. The rest of the people in the limo can't help but listen to Stephen and Kristin talk. The limo arrives at Stephen and Kristin's destination and lets them out. Remaining in the limo are LC, Lo, Morgan and Christine. They put on their favorite CD and sing along.

The Laguna Beach kids have planned an overnight camping trip on the beautiful island of Catalina. Christina will be staying on the mainland due to a singing engagement at her father's church, the Crystal Cathedral. Lo will also be staying around Laguna Beach because her father won't allow her to attend. Lo's father felt uncomfortable with the fact that the trip will not be chaperoned by adults.

Stephen, Kristin, Alex S., Morgan, LC, Dieter, Jess and Trey board a private yacht and set sail for Catalina. On the way there, Dieter scares the girls with stories about hungry bears mauling campers for candy bars. The girls laugh off Dieter's stories but appear to be worried. The Laguna kids arrive at the campsite and set up camp. Afterwards, everyone goes canoeing except for LC. LC decides to stay at the campsite, sit in a lawn chair and read magazines. LC, not really enjoying the camping experience, makes a phone call to Lo. LC tells Lo that she wishes she was back in Laguna.

After a fun day of canoeing, the Laguna kids return to the campsite. A pair of park rangers pay the kids a visit and warn them that due to the draught, bears wander into the campsites looking for food and water. Upon hearing the park ranger's warning, the Laguna kids begin to feel very uneasy.

As night fall comes, the kids get ready for sleep. They hear the sound of a growling bear in the distance, which puts them on alert. The girls rush to get into their tent. Meanwhile, Dieter and Trey are helping Stephen put on a bear costume in their tent. Stephen, dressed as a bear, steps out of the tent and roams around the campsite. He spots the girls? location and pushes his way into their tent. The girls scream and forcibly push Stephen out. They were hardly amused by Stephen's stunt. The next morning, the kids get back on their yacht and head back to Laguna Beach.

On the morning of graduation day, the Laguna Beach kids are slowly getting ready for their commencement ceremonies. As they try on their cap and gowns, their parents surprise them with graduation gifts. Lo receives a brand new German sports car, Christine gets a shiny new bible, Morgan gets a slick laptop computer and Trey receives a high-tech sound system.

After a high-speed skateboarding session, Stephen, Trey, Polster and Dieter are lounging around a table, talking about college. Dieter asks Stephen if he is still going to be with Kristin while he's away at college. Stephen doesn't think they will be together and says he is really looking forward to the ladies he will meet up in San Francisco. Meanwhile, at Kristin's house, Kristin is hanging out with Jessica. Jessica asks her if she is going to break up with Stephen. Kristin says "yes," but thinks they will be together when they are home in Laguna Beach. Kristin states that she doesn't want a boyfriend when she's at college.

Later at the graduation ceremony, the Laguna Beach kids are sitting together and having a great time. The senior speaker is called upon to address the senior class. Before he can deliver his speech, Dieter stands up to shake his hand. After someone yells at Dieter to sit down, the senior speaker gives a inspiring speech about the excitement of moving on to college and the lingering feeling of not wanting to leave the beauty of Laguna. The next day, LC and Lo are sunbathing in Lo's backyard, talking about boys. Life continues in Laguna Beach.

The Laguna Beach cast have just graduated high school and are now enjoying the summer before they leave for college. Stephen and Kristin's relationship is the best it's ever been--they are having tons of fun together going swimming and surfing.

While all Laguna kids are hanging on the beach, Christina reveals that she will be not be attending college. She has decided that she will be moving up to Los Angeles to pursue an acting career. Christina asks Kristin what her relationship is going to be like when Stephen is away at school. Kristin says they will break up. Christina tells Kristin that her decision is the right one.

Later, LC and Lo go over to Talan's house to hang out in his hot tub. Talan jokingly asks Lauren if she would ever get into a "threesome." LC, shocked at Talan's question, says "no way, that's disgusting." Then Talan asks the girls for advice on his senior year. The girls say that during senior year only your true friends will stay friends with you.

Afterwards, Trey has a BBQ at his house. Trey talks about how he's going to miss certain things in Laguna Beach that he can't get on the East Coast. The kids continue chatting and eating as LC glances at Stephen. Finally, most of the kids head home. Stephen is the last one to leave. Stephen reminisces with Trey about the good times he had at Trey's house. The next morning, Trey says goodbye to his dog and his parents, throws his bag over his shoulder and heads out to college.

Trey has already gone off to college while the rest of the Laguna kids are hanging out at one last bonfire on the beach. Christina proclaims that this is probably the last time they are going to be together, or at least until Thanksgiving. While cooking marshmallows, Kristin states that she and Stephen had been to Tiffany's looking at rings. "Yeah, we're going to get married." says Kristin. LC rolls her eyes at Kristin's nuptial news. Later, Stephen calls up Trey to see how he's doing at college. Stephen gets his voice mail. Stephen then ask the Laguna cast to shout a greeting to Trey as he holds up his cell phone.

The next day, Kristin is helping Stephen pack for his move to San Francisco. As they pack, Stephen and Kristin talk about who among their friends will like and dislike college. Kristin feels that LC would probably not enjoy the college experience. Kristin then asks Stephen if he is going to miss anybody while his away at college. "Yeah all my friends," Stephen says.

Later on, Stephen and Kristin sit and watch the sunset from the roof of Kristin's car. Stephen tells Kristin she is the first and actual real relationship he'd ever had. Kristin then asks Stephen what the future of their relationship is going to be like. After a short discussion, they agree that they will have an open relationship. The next morning Stephen packs up his pick-up truck and drives up to San Francisco.

Lo, Kaitlyn, and Jen are hanging at LC's house, helping LC pack her suitcase. Jen thinks that three months of clothes is a lot of clothes to bring. LC contests by stating that "you don't need to bring three months of clothes, you just have to do laundry." Jen reveals that she has never done laundry and states she only has "thrown it in."

Later, LC's mom and dad drive her to the airport. LC's parents wave a teary good bye to LC as she goes through airport security. LC's arrives in San Francisco and exits the plane with a solemn look on her face. After retrieving her bags, she steps outside of the airport. At the curb is Stephen, waiting to pick her up. Kristin begins to smile as she places her bags in the back of Stephen's truck. As Stephen and LC travel across the Golden Gate Bridge, LC says, "Oh my God. I'm really on my own. I don't live with my parents anymore. Weird."

It's Christmas break in Laguna Beach. Kristin has ruled the school, LC is leaving San Francisco and the drama is all around.

Before completely unpacking after his return home, Stephen rings Kristin. The two have an awkward meeting on the beach. Unfortunately for Stephen, Kristin has moved on with Matt. Bored with the conversation going nowhere, Kristin walks away.

Laguna's resident bad boy, Jason, has caused his own share of drama. He's dating Jessica, but it's not clear if he can be trusted. Kristin gives best friend Jessica a little reality check: Jason's probably cheating on her with Alex M. After all, says Kristin, it takes a heartbreaker to know one.

At Lo's Christmas party, Kristin gloats over getting a call from her new beau, Matt. This is hard for Stephen to witness, and he moves in toward Kristin to try to get her attention. She shuns him. The next night, he takes LC on a romantic dinner date. Ironically, Kristin calls. Stephen and LC get a laugh out of that and ignore Kristin's call.

Kristin and the girls party on the town in a stretch limo. True to Kristin's prediction, Jessica gets an upsetting call from Jason. Meanwhile, as the girls rock out in the limo and get silly, Stephen and LC chill out in the hot tub and get serious. No wonder Kristin warned us to expect twice the drama in Laguna Beach this time around.

With so many hotties living in Laguna Beach, one would think having a love life in Laguna would be easy. There's no telling exactly what's going on between LC and Stephen, but it is clear when they're sharing breakfast that the sometimes-more-than-friends pair stayed up until 4:00 a.m. the previous evening. Things between Kristin and Stephen seem to be officially over, leaving the chaos of their relationship to last year.

Enter Jason and Jessica, Laguna Beach's newest drama-driven couple. Alex M. has turned out to be quite an obstacle for Jessica, who is constantly told by friends Kristin and Alex H. that boyfriend Jason is unfaithful to her. Jessica denies Kristin's accusations, which Kristin says are based on her own experience with cheating. Although Jessica refuses to dump Jason without solid evidence that he's cheating, she can't help but wonder when she hears about multiple meetings between Jason and Alex M. When Alex M. and Taylor run into Jason and Talan on the beach Alex M. invites Jason to a poker party at Morgan's, but adds he should come only if it's okay with Jessica.

While getting ready to go out with the girls later that night, Jessica reveals to Kristin and Alex H. that Jason's hanging out with Cedric instead of her, only she doesn't know that "eating dinner" - as Jason says - means playing a prank on Alex M. and her friends. Meanwhile, LC divulges her thoughts on her much-improved relationship with Stephen to Lo. Could LC's and Stephen's late-night hang out mean the two are back on the more-than-friends track?

Finally, Jessica confronts Jason about the relationship warnings she's received from her friends. When she asks Jason what he talked about with Alex M. the night before, Jason is quiet, and swears on his relationship with Jessica that nothing happened between he and Alex M. But Jason admits that he very well could be forgetting all that they talked about...

It's the tale of two birthdays in Laguna, and each one has more drama then the next.

First, LC is headed south of the border to Mexico with her best guy friend Dieter, and her most wanted boyfriend, Stephen. Also enjoining them is Kaitlyn. The four enjoy a b-day celebration away from the confines of Laguna Beach.

Second Kristin is busy getting ready for her own birthday party. (who knew that LC & Kristin were the same astrological sign?) She spends the day in full party prep mode and confides in her friends that she'd like to keep Taylor off the guest list.

Speaking of Taylor, Talan escorts the blond California girl on a romantic Caribbean dinner date. There he 'fesses up that he's unattached because every girl he's ever tried to get close to has failed in comparison to Taylor. And yet the next night, his flirting with Kristin at the party is obvious. Good thing Taylor wasn't there to see it.

LC has what seems like a dream date with Stephen... Well, she's entitled to one birthday wish. After a night out on the town in Mexico, she and Stephen find their way back to room 703, where Stephen puts out the " Do Not Disturb" sign.

But all good things must come to an end, and as the gang heads back to the states, LC has a hard time hiding her emotions. She knows that Stephen is headed back to San Francisco. The two exchange hugs, then as quickly as he re-entered her life, Stephen os off again. LC is left alone to make the drive home fighting the tears.

Who says the Laguna ladies are the ones to spark all the drama? Jason and Talan find themselves in the middle of their own relationship conundrums, with Jason living up to his title of "resident heartbreaker" with Jessica and Alex M., and Talan playing the field with Kristin and Taylor.

But the girls can't let the guys hog all the drama for too long. Alex M., Taylor, and Morgan S. play a little payback prank on Talan, Jason, and Cedric by dousing their car with plastic wrap and silly string. Meanwhile, Jessica can't bring herself to believe that Jason has cheated on her, especially since a little surfing through Jason's cell phone call log turns up no evidence of infidelity. While the dueling duo is one to stay true to the relationship motto "kiss and make up" after fighting it out at dinner, it's apparent that Jason's and Jessica's relationship is more up in the air than ever. Can we say deja vu?

It seems that Talan has his own case of deja vu when he has dinner with another of his Laguna gal pals, Kristin, who has her own questions about his relationship with Taylor. Talan answers with a loud "What?" and proclaims that he doesn't "get" Taylor. "I'm the nice guy who finishes last," Talan says. But will he "finish last" when it comes to a relationship with Kristin? Maybe so, seeing as Kristin openly admits to Alex H. that she plays games when it comes to guys.

In the end, it turns out Kristin's not the only one playing relationship games. When Jason doesn't answer Jessica's two phone calls on the night they're supposed to hang out, it's clear that Jason's opted to stand Jessica up in favor of dinner with Alex M., Casey, and Cedric. Meanwhile, Taylor and Talan brawl at the beach over their on-again, off-again relationship. Taylor tells Talan to just go ahead and be with Kristin, while Talan says it isn't Kristin who's keeping him and Taylor from dating. "I don't want to crash and burn, Taylor," Talan says. Relationships crashing and burning in Laguna Beach? Sounds familiar.

It's time for Winter Formal and that means the drama season is in full bloom. Alex M. and Taylor are pros when it comes to the tradition known as the girls-ask-guys to Winter Formal. Alex M. and Taylor have the ultimate surprise scavanger hunt planned for Talan and Jason. The only problem is their scavenger hunt leads to Jason agreeing to go to Winter Formal with Alex M., instead of his girlfriend Jessica. Kristin experiences her own share of Winter Formal stress, planning a surprise at longtime friend Ian's workplace. Meanwhile, Jessica settles for her friend Jake as a Winter Formal date. Just because she can't have Jason as her date doesn't mean she's not going to strut her stuff at the dance.

As if the clash of the cliques couldn't get any steamier, Taylor's clique and Kristin's group show up at the same manicure salon. It turns out hair extensions and acrylics are the look of this season. At the dance, Jessica confronts Jason about his whereabouts the previous evening, only to have Jason laugh off her accusations. Jessica tries to find consolation in talking to some other guys about the Jason situation, but how much consolation can a girl really get when her boyfriend's dancing with another girl nearby?

After the dance, Taylor and Alex M. stop for some post-party fast food. Meanwhile, Jason and Jessica fight it out in their limo 3:00 a.m.-style. Both are fed up with each other, but neither can let go. In another limo across town, Alex H. locks lips with her date Jeff, while Kristin and Ian maintain their good old-fashioned friendship boundaries. No post-Winter Formal kissing for Kristin this year.

The next day, Kristin and Alex H. reminisce about their last Winter Formal. Kristin finds herself nostalgic about her two-and-a-half-year past relationship with Stephen. Is it Stephen she misses, or is she just tired of not having a boyfriend? She wonders. Over at the beach, Alex M. admits to Taylor that it was awkward dancing with Jason because of Jessica; she can't deny that Jason isn't exactly on the dating market. Little does Alex M. know that at that very moment, Jason's across town admitting to Cedric that he has a thing for her ...

You can always count on Valentines Day to stir up some romance and heartbreak in Laguna. Stephen is back and he and Kristin are having their third Valentines Day dinner together. Alex H. and Kristin aren't positive it's a date, but Kristin thinks it probably is. A dateless LC gets a surprise visit from Lo, who brings along her boyfriend from college. LC is really happy Lo has found someone but can't help feeling a little lonely in the midst of the romance. After all, LC says, Valentines Day is just a way to make people feel worse about not having someone to share it with.

Jessica spends the day preparing for a romantic dinner at her house with Jason. Jessica goes all out, even though she is pretty sure Jason won't appreciate it at all. Tensions are high during dinner and not only does Jason not appreciate Jessica's efforts, he tells her she went too far. Meanwhile, Kristin and Steven have an equally uncomfortable Valentines Day dinner together. Kristin wants to know if Stephen has been dating and doesn't fully believe him when he says he hasn't.

The next day, Stephen stops by to surprise LC with some flowers. LC is overjoyed to see Stephen and can't believe that he doesn't have a Valentine. But while things may be heating up between Stephen and LC, things are ice cold between Jason and Jessica. Jason tells Jessica that they can't be a couple anymore. They get together to talk about their relationship and Jason apologizes to Jessica for treating her badly but says they can't be friends anymore either. A heartbroken Jessica goes to Kristin for support. Jessica is so upset since she and Jason were good friends for years before they dated. It's a terrible end to the Valentine season for Jessica, but Kristin saw it coming and thinks Jessica is better off without two-timing Jason. With all these single people in Laguna Beach, things can only get hotter.

Jessica is seriously missing Jason. So it's the perfect time to get away from Laguna. Jessica, together with Alex and Jeff, Kristin and Talan head out to Mammoth and hit the slopes. A weekend of snowboarding is sure to help, right?

Meanwhile back in Laguna, Jason and Alex M are finally together. Jason fresh from his break-up with Jessica has asked Alex out. The two head out to a romantic dinner which the rest of the gang practices their moves out of the slopes? Which includes Kristin, Alex and Jessica picking up three cute snowboard instructors.

LC and her friend Kaitlyn have also setout to Mammoth for the weekend, but spend most of it getting cabin fever. The two do make it out of the condo to meet Talan for lunch. Talan lets it slip that Stephen took Kristin out on Valentine's Day. Not cool.

Speaking of Stephen, he flies back in to Laguna just long enough to meet up with Kristin after she returns home from snowboarding. The two share a cute lunch and plan to meet up again, this time at Stephen's college.

As for Jessica, she spent the weekend pining away for Jason, calling him on the phone and complaining about him to anyone who will listen. Alex could care less, saying: "I don't think Jason really liked her in the first place."

Alex M. has finally gotten what she wants - Jason - all to herself. Now, if only she could make up with Alex H. and everything would be perfect! Trying to put the past behind them, Alex H. and Alex M. meet for dinner and decided that it is time for the two cliques of Laguna Beach to reunite.

Back at Kristin's house, Jessica tells Kristin the devastating news that she just found out... Jason and Alex are officially a couple. Not exactly what she wanted to hear. To make matters even worse, Jason barely even talks to her.

Later on, the entire Laguna crew meets at the beach for a night of late night bon fires, marshmallow roasting and the latest gossip. Jessica and Alex M. leave the group to discuss Jason's new relationship. Alex promises Jessica that she doesn't want to hurt her and tell her "I would never kiss him in front of you." Promises are easily broken in Laguna. Jason arrives later to the beach and Alex seems to forget about Jessica's feelings.

Trouble begins to brew, as Jason's attention begins to drift away from Alex, straight back to Jessica. At dinner with Kristin, Alex H. and Taylor, Alex M. senses a bit of deja vu, when she finds out that Jason has been hooking up with Jessica.

Alex confronts Jason about the hook-up and asks him if he still want to be with her. In true Jason fashion, he says "Yes and no."

The Laguna guys are on their way to Cabo. Everyone can't wait to leave Laguna ...that is everyone except for Jessica. After her hookup with Jason, no one knows what to expect when Jessica and Alex both decide to go to Cabo. Will Jessica and Alex fight it out? Luckily, Jason decides not to go to Cabo.

As Kristin and Alex H. prepare to leave, they both plan on having a fun and crazy time. "What happens in Cabo, stays in Cabo" says Alex H as Kristin makes a toast to hot boys in their room at Mexico.

Once the entire crew arrives in Cabo, the tension builds between Alex M. and Jessica. Jessica spends the entire time hanging out with Emily and not Kristin and Alex H. But Jessica certainly doesn't seem to be crossing Kristin's mind... she's too busy hanging out with Talan.

Fighting erupts one night at a night club, when Alex M. spots Jessica entering the club. Emily begs her not to ruin everyone's trip, but no one can hold Alex back. The inevitable happens as the two girls caught in Jason's love triangle shout it out in a screaming match until Jessica finally gives in and apologizes. Still, this doesn't impress Alex M, as she says "You're one low chick."

The drama returns to Laguna with the Laguna Beach crew after they return from their crazy trip to Cabo. Kristin's love life heats up as Talan and Stephen both try to win her over. As Kristin preps for her long weekend of romantic dates with Talan and Stephen, Alex H. says, "Kristin, you always get the upper hand with guys." There's no denying this, as both Talan and Stephen plan romantic outings with the girl of their dreams.

Not knowing that he has competition, Talan treats Kristin to a romantic candlelit outdoor dinner at his house, even cooking the entire meal for her. Soon after she arrives at his house, he proclaims, "This is from the bottom of my heart." Kristin stays quiet, not knowing what to say to Talan... not exactly what he expected. As the two sit in silence, Talan asks Kristin what her plans are for the weekend. Of course, Kristin replies to this question with the answer Talan wants to hear. "Nothing," she says, knowing that in a few hours, she will be headed to San Francisco to see Stephen.

Within hours after her dinner with Talan, Kristin arrives in San Francisco to patch things up with Stephen. Stephen surprises Kristin by taking her up to an overlook at night, treating her to delicious Chinese food under the stars and fireworks. Kristin and Stephen sit in awkward silence until Stephen admits his feelings, saying "It's weird being friends with you. I'll always be attracted to you." Not knowing what to say, Kristin replies, "It's not the right time for me to have a boyfriend."

Meanwhile, back in Laguna, rumors spread faster that Kristin's love life as Casey tells everyone what she hears about Alex M. Trying to salvage her friendship with Alex and her popularity with the Laguna Beach girls, Casey apologizes to Alex, only making things worse. "I'd be a fake person if I pretended everything was ok. I don't like you at all," says Alex.

It's fiesta time in Laguna Beach.Pinatas, cold drinks and lots of drama...the perfect recipe for a fun time for the Laguna crew. Kristin and Alex H. throw a the party, and everyone's invited... well that is everyone except for Alex M. and Taylor. After things get started Kristin and Jessica sneak away from the rest of the crew after Kristin notices that Jessica still feels uneasy around Jason. The two girls have a heart-to heart and Jessica admits that she has a huge crush on Jeff, the new hottie of Laguna Beach. Soon after Jessica's confession, Kristin gets a little too cozy with Jeff while Jessica hangs out on the beach with Alex H. " I wasn't thinking straight" Kristin admits later to Alex H., regretting her make out session with Jessica's new crush.

Angry that they weren't invited to the fiesta, Alex M, Taylor and Morgan decide that it was better off that they didn't go. " Talan called me afterwards and told me everyone was totally bored" Taylor tells to the other girls, reassuring everyone that they didn't miss anything.

Trying to keep the entire crew together, Talan invites all the girls to go to the Wavehouse. All the girls decide to go,except for Kristin and Alex H. While bonding over sun bathing and watching hot boys brave the faux waves, Taylor and Alex M. decide it's the perfect time to talk to Jessica (away from Kristin)about Jeff. Jessica admits once again that she really likes him. "It's so bad though" Jessica admits about Kristin hooking up with her new crush. "She's like 20 times prettier than me". Taylor immediately reassures Jessica that she is totally wrong, telling Jessica that she is such a better person than Kristin.

Meanwhile in San Francisco, Stephen meets up with LC when she comes into town to work for a trunk show for her internship. The two reminisce over dinner, and Stephen confesses to LC that he "always wanted to kiss her" as LC tells him that their first kiss was the "perfect first kiss." Forgetting entirely about his weekend with Kristin,Stephen asks LC the ultimate question.... "What if you and I had a lasting relationship?" Unsure of what to say, LC responds to him saying, "I don't know...."

It's that time of the year again. The school year may be winding down, but prom season is approaching Laguna Beach at full force. As the last important large scale social event of their senior year, the entire Laguna crew tries to prepare for this momentous occasion. Little do the girls know that the boys have something up their sleeves that will make the big question just as memorable as prom night itself.

Jake starts off the memorable prom proposals when he hires a towing company to tow Taylor's car when she goes to get a manicure. An upset Taylor goes outside to see her car get towed away, but is pleasantly surprised when Jake runs up with flowers and pops the question right before he tells her that her car isn't really being towed.

Jeff C. and Jeff B. dress up in gorilla costumes, and carry huge banana signs that say "Prom?" As Alex H. and Jessica sit and talk over lunch about their anxieties about finding prom dates, both Jeffs jump up and scare the two girls until the girls realize that they are being asked to go to the prom.

Time is ticking, and Talan still hasn't asked Kristin to go to the prom. Although Talan is the last guy to ask one of the Laguna girls to the prom, his prom proposal is certainly not the least spectacular. Hiding in Kristin's garage, Talan dresses up in a tux, decorating the garage with huge red balloons, bouquets of roses and tons of rose petals everywhere. To top it off, he leaves a bouquet of flowers outside on the sidewalk, with a letter instructing Kristin to close her eyes and count to ten. As Kristin reads the note, the tension builds, as her wishes come true when she opens her eyes and see Talan standing in front of her.

The day of the prom has finally arrived! The Laguna crew gets ready, and then heads to Sarah's house for a pre-prom party so everyone can take lots of pictures and scope out the scene. The girls laugh, and taunt Casey as she arrives in a revealing dress that "totally isn't a Laguna look" according to Kristin. Alex M. eyes Jason flirting with his prom date, Cami... a girl she and Cedric write off as just a "random prom date." Although Cami may have been Jason's official date, by the end of the prom Jason and Alex M. revert to their old behavior as they both make-out the entire night. If only Talan and Kristin's night could have been as enjoyable.

While all of the prom drama unraveled for all of the Laguna high schoolers, Stephen escaped San Francisco to catch some relaxing down time with LC. The two strolled up and down the beach, gazing into each other's eyes as the sun went down. Even though the school year may be coming to an end...the drama at Laguna Beach is just starting up.

LC and the girls decide it's about time that all of the college kids and a few of the "mellow senior girls" from Laguna have a barbeque get together at her house. A fun party with everyone from Laguna only means one thing... drama, Laguna Beach's specialty.

Everyone arrives at the party, including Stephen, Morgan, Alex M, Taylor and even Casey. The party is pretty mellow until Talan shows up with Jason. Upon seeing Jason, Alex M. immediately leaves. She isn't the only person who doesn't want Jason to be there. Things don't go exactly the way Stephen imagined, as LC falls under the spell of Jason's charm. No one knows what to say when Jason and LC flirt in the pool, and then take it into the hot tub. A baffled Stephen just sits and watches in disbelief.

Meanwhile, Kristin, Alex H. and Jessica's night is stalled, as they all pile out of Kristin's car after it won't start. Kristin's dad decides that she deserves a new car and gets her a brand new BMW. "I'm in shock" Kristin says after she pulls up to Jessica's house, seeing the look of excitement on her friend's faces.

The day after the barbeque, LC, Jen and Heidi recall the festivities, deciding that it was a "successful barbeque." LC admits that she wants a boyfriend, and decides that "you'll always have that one boy that you're always comfortable with and you'll always kind of like. That's your purse you'll always wear. Then you have that gorgeous bag you want everyone to see you with." The girls decide that the "gorgeous bag" will always be a jerk." Right on cue, Jason calls LC, inviting LC to dinner with him later on that night. Glowing with excitement, Jen immediately ends LC's moment of happiness when she asks her if Stephen will be jealous. "I'm over Stephen...102%." says LC. Perhaps Stephen, the once "gorgeous bag" has now taken his place as the "purse you really like, but you don't really want to be seen with."

The time that the Laguna Beach high school seniors are dread about has come... graduation day! High School is dunzo and the guys will pack up and separate to go to college.

The Laguna crew prepares for the big occasion getting on the long gown and dorky looking cap. "It's so huge." Kristin complains to Alex H. , wishing that they could wear something cuter on this special day. No one knows exactly what to wear. As Jessica tries a revealing red dress in her house that her little sister believes looks like lingerie, Cedric tells Jason that he thinks he'll just wear his boxer under the gown. Which would certainly make a memorable graduation moment!

Tension rises, as the Laguna cast counts down the hours until they are officially oiut of high school. Knowing this, the parents give the kids graduation gifts in the Laguna style. Nothing say congratulations like a frying pan, or so Kristin's dad thinks as he hands her his graduation present. "Thanks, dad... it'll go great in my new apartment?" Kristin says, not knowing how to respond to such an odd gift. The other parents give their kids more traditional graduation presents. Alex H., Jess, and Taylor come to the ceremony with a little more sparkle, as they wear their new necklaces and rings their parents gave them before they left to go to the ceremony. But Casey outshines, as she gets an entire Tiffanys jewelry set, just what she wanted! Casey coos in awe of the gifts as she heads off to the ceremony as well.

Just like any other Laguna event, Graduation day comes and goes. Everyone is there, except for Talan (who decides not to walk and get his G.E.D. instead.

Alex H. and Kristin are laying in bed the day after, in shock that high school is finally over for them. In the spirit of new beginnings, Casey invites Alex M., Taylor and Morgan over to her house for lunch the day after graduation to try to make up for her falling out with the girls. They sit and have lunch together, and decide that the drama should stay behind with their high school days, as they decide to be friends again.

Laguna Beach wouldn't be Laguna Beach if there weren't any drama and scandal in it, so as Jason and Lauren get cozy at Jason's grandparent's house, Alex H. runs to the beach to tell Kristin and Jessica about the scandalous couple. "That is so random" they all say, as they sit on the beach letting Jessica talk about what a terribe boyfriend Jason will be for Lauren.

The summer has officially begun and the Laguna kids decide to hold a benefit called "Fight the Slide 2005" to help the victims of the recent landslide in Laguna Beach. Trey and Lauren team up to head the benefit which includes a fashion show, auction and musical performances by Talan and Alex M. Everyone goes to local businesses to ask for donations and it looks like it's going to be a huge success.

At the rehearsal, Jason is up to his old habits, giving Jessica a 'Hi babe' and winking at her while walking down the catwalk - in front of LC, no less.

As the festivities begin, something is brewing between Jessica and Jason. Jason calls over Jessica to sit on his lap while Talan goes up to sing. It seems like innocent fun and he goes up to LC afterwards and tells her that she's the only one for him.

The fashion show is ready to begin. All the girls and guys get in their fancy duds and take to the catwalk. LC takes some time out to set Jessica straight but her anger falls on deaf ears. Jason continues flirting with Jessica and before the fashion show begins, they are caught kissing by LC - only minutes after Jason proclaimed his love for her. She is furious but can do nothing about it because she has to make sure everything is in order for the show. When Jason tries to come up and talk to her and make amends, say tells him to stay away from her. Dieter tries to comfort LC but nothing is going to calm her down. Dieter tries to pry the truth from Jason but in his typical manner, he acknowledges that the kiss happened but blames the kiss on Jessica. They call Jessica to get the truth but she denies everything. LC tells Dieter that she saw Jason initiate the kiss and the episode ends with LC leaving Jason at the event, looking distraught and realizing the consequences of what he did - with the Backstreet Boys' "Incomplete" in the background.

Summer time is almost over, which means that everyone must go separate ways, leaving behind their high school friends, for new college adventures. After the entire Jason & Jessica fiasco that ruined LC's big fashion show benefit, LC decides to throw a big party before everyone leaves for the fallsemester. Everyone's invited... well that is everyone except Jessica and Jason.

Realizing what he did at the benefit, Jason confeses to Talan that he loves LC and that he "wanted to marry her". Talan tells Jason that the only way to make up with LC is to talk to her and apologize to her. Deep down in his heart, Jason realizes this, but knows that it won't be easy for LC to let go of her anger and distrust him.

The cocktail party goes off without a hitch, Taylor approaches Lauren and tells her that she is very sorry for what happened at the fashion show. "Sometimes you have to see it for yourself" Taylor says, explaining that everyone knows Jason's bad reputation, especially with girls. surprisingly LC nods, and tells Taylor that she might forgive him.

Everyone is chilling by the pool until Kristin and Alex H. make their well known late arrival, as they arrive to the party without even noticing LC. Stephen leaves the rest of the crew to hang out with Kristin and Alex H, something that only helps contribute towards the bitter feelings felt between LC and Kristin. The next day, Kristin realizes that maybe she should have talked to LC at the party. These sentiments only last for a few seconds, and soon Kristin is busy gossiping about her fun night with Stephen.

Jason calls LC the day after the party and asks her if they can talk about everything that happened. LC agrees to meet Jason outside of her house, as her father will not allow Jason inside of the house. " I wanted to apologize" Jason tells LC, hoping that things will go back to normal. Still, LC is very hurt, telling him that what he did to her was "humiliating" and that "he reuined everything." Jason states that he still has "feelings for her." An awkward silence passes as Jason feels that this relationship problem is not going to be as easy to fix. Moments later, Jason says good bye to LC and drives off in his car.

Summer has ended and it's time for the cast to leave the beautiful Laguna Beach. Jason, Talan and Cedric are at the beach having one last surf session together. After the waves died down and they're getting ready to leave, Cedric realizes that this will probably be the last time they'll be surfing together for a long time.

Later Alex M. stops by Taylor's house. Taylor is packing her stuffs for her first year in college. At the site of Taylor packing her clothes, Alex M. states that "This is really sad" Taylor tries to comfort Alex M. by saying "You can always call me." to what Alex M. says "It won't be the same."

Stephen swings by LC's house to see "What's up." LC is working on getting her things together for her move to Los Angeles. She takes a break form her packing and joins Stephen on her patio to chat. The two talk about the past events they experienced on the summer. At the end of their heartwarming chat, LC tells Stephen "Well, I guess you're stuck with me as a friend."

Afterward, Kristin meets up with Stephen at the beach. Kristin feels wierd about the whole situation where everyone is leaving Laguna. Stephen tries to comfort Kristin by relating the emotions he felt when Trey was the first to leave for college last summer. Stephen hugs Kristin goodby and leaves. Kristin stares out onto the crashing waves thinking about the ups and down of her relationship with Stephen.

Back on the sunny beaches of California, Laguna's next generation doesn't waste any time ranking on the drama-meter. While Tessa works on her tan with her best friend, Raquel, she ponders going to her ex-friend Kyndra's barbeque. Worried about heading into enemy territory alone, Tessa says she'll only enter the popular clique's turf with Raquel by her side. Even though Raquel doesn't want to show up uninvited, the two ultimately decide they're willing to take the risk to see the guys.

Popular girls Kyndra and Cami spend time shopping and gossiping before the party. Cami freaks at Kyndra's inviting Tessa, but moves on to a more important subject - Cameron. Kyndra keeps crushing on the popular jock despite his being involved Jessica (yes, that Jessica). Meanwhile, Jessica meets up with Alex M., Alex H., and Taylor for lunch, where she dishes on being with Cameron. Her friends rag on her for dating a younger guy, but she doesn't seem to care.

As Cameron and Kelan shoot some hoops, Kelan teases him about playing the field. He's talking to both Jessica and Kyndra, but taking Jessica out to dinner at night. When his phone later rings on their sushi date, Jessica steals his phone and starts reading through Kyndra's text messaged. She smells something fishy and confronts him, saying she learned a lot about guys form her ex, Jason.

Before The party, Tessa makes a stop at Nick G.'s house, where Chase is holding band practice. The two take five and go outside to catch up. When he asks her if she's going to Kyndra's barbeque, Tessa says that she's hesitant to go since they've driftd apart and the girls have been mean. Chase responds that girls are 'sketchy', and the two exchange a meaningful glance.

At the barbeque, the popular girls welcome in the crowd of boys. But the girls aren't happy for long. When Tessa shows up with Raquel, Kyndra gets heated. The party divides, with Kyndra's clique on the sofa loudly trash talking Raquel and Tessa. Knowing they aren't wanted, Tessa and crew leave. Then, with a little flirting, Cameron convinces the girls to hit the hot tub. While Jessica thinks Kyndra is 'butt hurting' over not having Cameron, he shakes up the situation by revealing to Kelan that he stayed overnight at Kyndra's after the party.

After the barbeque incident, Tessa and Raquel remember why they aren't friends with girls like Kyndra, who later brags to Cami about hooking up with Cameron. Kyndra doesn't seem to care about Jessica - she's just enjoying the hunt. Meanwhile, Jessica watches over Cameron with her friend Courteney while they're on the beach. She's excited about how easy it seems with Cameron, and Courteney says Jessica's never looked happier. Little does she know what happened at Kyndra's...

With her 17th birthday just around the cornder, there isn't anything Tessa wants more then to spend her special day with her best friend and old flame Chase. Over lunch with Rocky, Tessa confesses that she still has feelings for Chase, but who wants to date a rocker?

Over at Kyndra's house, she is getting ready to hang out with Cameron. While she stresses out over making sure she looks perfect, she is quick to point out that even though they're going out together alone, they aren't technically going out on a date. During their 'outing', Kyndra makes it to a point to find out if Cameron is with Jessica. While Jessica might not agree, Cameron swears he has never dated her, and they only really ever hooked up once.

Later on at band practice, Chase gets a phone call from Rocky, who says that Tessa's surprise party has gotten the green light, and that he needs to go out of his way to make Tessa believe he isn't going to be around on the night of her big day. When Tessa and Chase meet up at the Koffee Klatch, Chase apologizes to Tessa, saying he'll have to miss her birthday because he'll be busy with his band Open Air Stereo. She seems bummed, but says she understands how important Chase's band is to him.

No one is more annoyed about Rocky's throwing a surprise party for Tessa than Cami and Kyndra. While laying out by Kyndra's pool, the two can't get over how tacky they think the invitations are. They are disgusted by the 'tastelessness' of the whole orderal, and aren't even sure they're going to attend. As far as Kyndra's concerned, the only real reason to go to Tessa's party would be to see Cameron.

The hour of the party is closing in, and Open Air Stereo has set up their grear, the decorations are in order, and Rocky has received a call letting her know that Tessa is less than a minute away. When the birthday girl walks through the front door of her party, she is completely shocked and taken aback by the crowd. Eventually the party moves downstairs where the band is rocking out and everyone is partying - even Cami and Kyndra. Midway through the set, Chase calls Tessa up on stage, and with little convincing, the entire party joins Chase in singing happy birthday. Well, except for Cami and Kyndra, who decides this is the time to ditch.

The next day, Tessa is still having trouble believing that previous night's party actually happened, and is happy that she celebrated her birthday with all her friends, most importantly Chase. Later on at dinner, Chase and Tessa talk about how important they are to each other. Just when conversation seems to be heading in the direction of romance, Chase's phone starts to ring. Even though things seem to be going well between the two of them, it looks as though any next steps might have to wait. Open Air Stereo is getting bigger than ever, and Chase's commitment to the band isn't going to leave much room for anything else.

It's Christmas time, and the Laguna gang is getting ready to spread the holiday spirit with a few parties. When Tessa and Raquel are stringing lights for Rocky's annual party, Tessa confesses that she and Chase are probably just better off being friends. Going over the night ahead, Rocky hopes Kyndra and Cami aren't planning on dropping in uninvited, wanting to avoid drama.

Meanwhile, Kyndra and Cami are out shopping for the festivities. Kyndra's going over the invites for her party the next night, and - surprise, surprise - Jessica, Raquel and Tessa don't make the cut. But, even though they want to avoid having 'stupid people' at their party, the two throw around the idea of crashing Rocky's party for laughs.

On the basketball court, the boys tell Cameron he's back in the 'circle of trust' ... as long as he doesn't plan on dating Jessica anymore. They rag on him for wanting to hang out with her over the guys, but Cameron doesn't seem to want to stop seeing her. At Raquel's house, she and Tessa bake up a storm while gushing over Rocky's new boyfriend, Alex.

The group at Raquel's is having a blast in the basement until dynamic duo Kyndra and Cami drop in with the boys. So much for staying clear of drama - Cami doesn't wait long to start a fight, claiming Rocky's friend Stephanie called her dirty. Kyndra immediately confronts Stephanie about the situation, telling her to apologize. When Stephanie starts to cry, Rocky keeps her cool, but Cami's not satisfied. Kyndra grabs Cameron and her crew bails out early. When Raquel and Tessa recap the night, the two decide they definitely don't want to show at Kyndra's. Instead, Raquel heads out on a date with Alex. At dinnder, he confesses how much he likes her, even if she does have a tendency to nag.

At Kyndra's party, Cami runs through last night's drama for the tenth time to anyone who will listen. Kyndra is all over Cameron, who's being teased about Jessica yet again. Even though he swears that he's not trying to go out with her, he decides to head over to Jessica'S house in the middle of Kyndra's party. Kyndra and Cameron get into a fight over it, and he leaves early.

The next morning, Kyndra claims she's over Cameron, and complains about the Laguna guys all being tagged as un- dateable. At a restaurant, Jessica and Cameron discuss the night before. When he says he's had a falling out with Kyndra, Jessica jokes about him denying a hook up. Cameron admits she isn't far from the truth, saying wouldn't be fair to Jessica to be fooling around with Kyndra. Jessica glows from the news, and the two make plans to 'hang out' that night.

With all the holiday drama out of the way, perhaps the tensions between the Laguna cliques will ease up long enough for old friends to reconnect.

During a visit by sister LC, Breanna spills the beans about her falling out with former best friend Raquel, who caused the rift by not showing up to her sweet 16 party. LC advises her sister to invite Raquel to her pool party and to straighten things out.

Breanna later reaches out to Raquel, who is enjoying a quiet day at the beach with new boyfriend Alex. The two make lunch plans to discuss the state of their friendship and the pool party. After the call, Raquel tells Alex that when she started hanging out with Tessa, she felt abandoned by Breanna.

Meanwhile, Chase tries to help out Kelan with his love life by giving him the extra nudge he needs to make the first moves on Lexie. Chase convinces Kelan to let him organize a group dinner date, and when Lexie accepts, Kelan looks happy, but is hesitant.

At lunch Breanna and Raquel finally talk about their problems. Breanna says she felt betrayed by Raquel's affinity for Tessa, and Raquel admits that she needed Tessa's support, especially at the sweet 16, because her other friends began to write her off. With Breanna beginning to get emotional, the two agree to make amends.

After lunch, Raquel confides in Tessa while Breanna turns to Lexie. Both confidants are hesitant of the reconciliation and warn their friends not to trust the other.

That night Lexie, Kelan, Chase and Tara head out for a fancy French dinner together. The girls and Chase are excited about the restaurant, but Kelan seems less so. Feeling out of touch with the high maintenance environment, he comes across as a bit standoffish, and then annoys the girls by taking a cell phone call at the table. Chase encourages Kelan to make a play for Lexie, but it only serves to make him even more uncomfortable.

At the next day's pool party, Lexie ask Breanna about Raquel, but Breanna is more concerned with enjoying herself and says she doesn't know, or care, if Raquel shows up. Raquel, on the other hand bucks Tessa's advice and turns the other cheek, telling Alex on the way to the party how excited she is to end the feud with Breanna.

But, when they arrive, Raquel and Alex are not greeted by Breanna, or anyone else, for that matter. After being ignored for a while, they decide to leave. When Raquel goes out of her way to say goodbye, Breanna goes out of her way to dodge her. As a disappointed Raquel drives away, Breanna seems unfazed.

Since it's been a while since Tessa has done any modeling, she is nervous when she's asked to come to San Diego to do some runway work. Fortunately, she has friends, including ex-boyfriend Cameron, coming along for support.

While packing for the trip, Tessa gets a visit from Chase who is intrigued that her weekend plans include Cameron. When she explains she's been friends with Cameron for a long time, Chase is quick to point out that they've been friends even longer.

On the way to San Diego, Cameron tells Nick W. he's been annoyed with Jessica, and his friend advises him to cut her loose. At the fashion show, they agree that they think Tessa is attractive, and she seems taken aback by Cameron's presence when heading down the runway wearing a huge smile.

Later, while Rocky finishes getting ready for a night out, Cameron and Tessa reminisce about their romance a few summers back. When the gang - which also includes Stephen, Nick W., Raquel, Alex, Cameron, and Tessa - heads out to dinner at Dick's Last Resort, waiter Taco grills them on who's hooking up. Later, Taco clears the table to press Tessa, who reluctantly admits she has a crush on Cameron.

Meanwhile, over dinner back in Laguna, Jessica is bummed out because Cameron hasn't called from San Diego, and Alex H. tries to distract her by asking about what she looks for in a guy. Jessica lists all of Cameron's physical and personality traits, and Alex H. tells her they're made for one another.

After dinner in San Diego, the group heads back to the hotel to decide what to do with the rest of their night. When things start to heat up between Cameron and Tessa, Raquel convinces everyone to leave so they can have some privacy.

In the morning, a glowing Tessa admits to Rocky that she really likes Cameron. Unfortunately, Cameron tells Nick W. that he feels guilty about the hook up and says he is going to make a point to not let anything come of it.

At home, Cameron meets up with Jessica at the beach where she asks him right off the bat if he hooked uo with Tessa. Cameron denies the encounter, and tells Jessica he has a hard time getting close to her because he feels like she shuts him out. He also tells her that although they once dated, nothing would happen with Tessa again and they agree to just enjoy the rest of their time hanging out.

With Cameron still chasing Jessica, and trying to avoid Tessa, he's not the only person in Laguna falling back to old flings. Kyndra admits to Cami that she has plans to meet up with her ex-boyfriend Tyler later in the week. Convinced that Tyler will just break Kyndra's heart again, Cami quickly advises her friend to make the same mistake more than once.

Meanwhile, Tessa's feelings for Cameron are as strong as they were after their big hook up in San Diego. Not being able to contain her giddiness she reveals her newest crush to Raquel's mom. When Raquel's mom expresses her concern over whether Cameron is looking for a girlfriend or just playing the field, Tessa says she isn't sure.

Later on Alex H. and Jessica meet up for coffee to discuss Jessica's relationship with Cameron. Jessica says she likes hanging out with Cameron but is turned off by him still being in high school. Even though she really likes him, Jessica says she is hesitant to make an appearance at his birthday party, after somce convincing from Alex H. she decides to go.

Candace and Cami are concerned about Kyndra. They are worried that she's going to fall into the same vicious circle with Tyler, and that he's going to break her heart again. The girls decide that ultimately they can't protect Kyndra, and they'll have to let her make her own mistakes.

Later that night, Tyler and Kyndra spend an evening alone grilling steaks and talking about their past. Kyndra is taken off guard when Tyler asks her if she would consider starting their relationship again, she hastily answers him with a kiss.

The next night things are already bumpy for Kyndra and Tyler before they can make their way through their first date back as a couple. Over the course of their sushi dinner, Kyndra brings up their age difference in conversation. Tyler, who is several years older, tells Kyndra that he has moved past their age difference and that she ruined the dinner.

Over at Cameron's house the birthday party is in full swing. Jessica arrives mid way through the festivities and is welcomed by Cameron and friends. When Tessa shows up at the party with Raquel and Alex, she is eager to hang out with Cameron for the first time since they've returned from San Diego. Tessa makes her way to the back porch and watches from a distance as Cameron and Jessica affectionately cuddle up together. Disappointed with Cameron, Tessa opts to quickly retreat from the party, and not wish him a happy birthday.

The next day Tessa confides in Raquel that she is bummed about the previous night at Cameron's party. Raquel eventually encourages Tessa to call Cameron on the phone, but when she does; her call is intercepted by Cameron's friend Nick W. who makes up a story about Cameron not being available to talk. After stressing to Nick W. that she needs to talk to Cameron urgently Tessa hangs up the phone, she is left in near tears while Cameron and his crew head down the beach for a carefree game of volleyball.

While cooler temperatures head in, things are just beginning to heat up in Laguna. It's time for Winter Formal, the one dance where it's tradition for the girls to ask the guys. But with so few solid relationships going on, it's all up in the air about who will ask whom - and who they'll end up with at the end of the night.

As Cami, Kyndra, and Candace chat it up about dresses, dates and dancing, Cami predicts that Kyndra will break the ties to her out-of-high-school boyfriend Tyler and hook up with Cameron. Kyndra laughs and says she hopes she can make it through the night without Tyler killing her.

Now that Tessa knows how much of a player Cameron is, she has decided to distance her self from guys in general and head off to the dance by herself. While helping her best friend Chase pick out the perfect shirt for the formal, the two discuss their respective plans for dates. Chase informs Tessa that he has a date and after a brief awkward silence, quickly changes the subject.

It is tradition in Laguna for the girls to come up with imaginative ways to ask the guys to the winter formal, and this year is no exception. Lexie has her eye on Kelan and has decided to ask him by decorating his car with streamers, balloons, and washable non toxic paints. Kyndra on the other hand decorates a pizza with a message on it and delivers it to her friend Derek's house. Raquel keeps it simple by planning a picnic for her boyfriend Alex at the beach.

Tyler and his sister Nikki are talking about her formal plans over lunch when a twinge of his jealous streak emerges. When Tyler tells Nikki that Kyndra admitted to thinking Cameron was cute, Nikki agress to keep her eye on Kyndra for her bro. Later at the beach, Kyndra promises Tyler she's not going to dance like a "crazy girl" at the formal; the two make plans to meet up at Cami's after party.

It's time for the formal and the strech Excursion limos make their entrances, Cameron and Kyndra are flirting heavily with each other right off the bat. At the dance Kyndra whispers 'I love you', to Cameron. Annoyed with Kyndra's flirting, Nikki steps up and takes a stand for her brother.

At Cami's after-party, Kyndra secretly tells Cami she needs to go to church because she's "sinned" with Cameron on the dance floor. But when Nikki confronts her, Kyndra says the only mistake she made that night was not bringing Tyler to the dance. Fully knowing what went down on the dance floor, Nikki tells Kyndra that if she's going to cheat on Tyler, then they should just break up.

The next morning, Raquel and Tessa dish about the dance. Raquel, who traditionally hates formals, gushes about the amazing time she had with her boyfriend Alex. On the other hand solemn Tessa quickly moves past her below-average night to thoughts of her upcoming prom.

Meanwhile Cami unknowingly shares Tessa's view of the formal, and admits to Candace it was the least fun she's ever had at a dance. The only excitement of the night seemed to come from Candace witnessing Kyndra giving Cameron a hickey on the dance floor.

The next day at lunch, Kyndra and Nikki face off over coffee to discuss the previous night's events. Despite what the marks on Cameron's neck show, Kyndra tries to convince Nikki that no one hooked up at the formal. Frustrated with her lies, Nikki tells Kyndra she saw them at the formal dancing closely with each other. Unwilling to own up to the previous nights events, Kyndra tells herself and Nikki over and over that she's a good girl and nothing happened.

It's Valentine's Day in Laguna Beach, which means love - and drama - is in the air. Kyndra and Tyler have a dinner party planned for the day of romance, but with Kyndra's latest hookup, Cameron, on the guest list, it looks like disaster is on the menu.

Kyndra lets off some stream at the gym when she tells Cami how irritated she is about Nikki reporting back to her brother Tyler concerning the events of the Winter Formal. Kyndra wishes that Nikki would at least come to her directly instead of running and telling Tyler, but Cami points out that Kyndra would lie to Nikki anyway.

Nick W. and Cameron discuss the upcoming party when Cameron gets a call from Jessica, who informs him that she has a missed call on her phone from Cami. Cameron acts just as confused about the missed call, and after hanging up, he tells Nick it's probably because of the rumors that are spreading.

Cami and Nikki shop for the party and, of course, gossip about the Tyler-Kyndra-Cameron triangle. Cami tells Nikki about the recent fight Kyndra and Tyler had because of Nikki's spy work, and Nikki says how hard it is to be stuck in the middle of her friend and her brother.

With Kyndra confident the fight is behind them, she treats Tyler to a pre-Valentine's Day dinner. But a bitter Tyler makes his unhappiness known by barely talking, refusing her gift and finally asking to get their meals boxed up early. When she tells him again that she did not hook up with Cameron, Tyler's only response is "whatever," followed by silence. The next day, Kyndra receives a similar response when she asks Tyler if she can invite Cameron to the party.

Meanwhile, all the girls in Laguna prepare for V-night, from Cami & Co. placing bets on Kyndra and Tyler's inevitable fight, to Raquel professing her love for Alex to Tessa. During their romantic dinner, Alex admits he's not one to wear his emotions on his sleeve, but grabs Raquel's hands and reads her "Live and Love" bracelet aloud before asking her, "Do you live and love?" Raquel responds by telling Alex she loves him for the first time in their relationship, after a few awkward seconds pass, a hesitant looking Alex reciprocates the sentiment.

But love isn't everywhere in Laguna, especially when Cameron shows up at the party. During the dinner portion of the Valentine festivities Nick W. and Cameron laugh about how Tyler is "gnarly." Afterwards, everyone heads inside to shoot pool while Kyndra and Cameron remain behind for a few minutes. When Kyndra tries to talk to Cameron, he is fairly unresponsive, so Kyndra blows him off and tells him to come inside when he's done eating. When Kyndra and Tyler meet up inside he accuses her of being too busy with Cameron to be around him. Kyndra swears she's been downstairs the whole time, but Tyler's in no mood to listen to her excuses and says the relationship isn't working.

The next day, Alex and a friend recap Alex and Raquel's date while skateboarding, and Tessa and Raquel do the same on the beach. Even though they both agree on how romantic the date was, Alex says he's "not falling in love," while Raquel obviously feels otherwise.

Things are far from perfect when Tyler and Kyndra sit down poolside the day after the dinner party. As they start to talk about their relationship Tyler reveals that he knows that Kyndra lied to him and that he wants to end their relationship. Kyndra tries to explain herself but Tyler has already made up his mind, instead of arguing the point any further Tyler asks Kyndra to leave.

In Laguna Beach, it seems like there are always new relationships sparking up as others fade away. It's no different now, as Tessa goes on a date with Cameron's friendnDerek at the same time Jessica and Cameron head different directions.

Over coffee, Jessica tells a friend that she knows about Cameron's winter formal hook-up and is surprised that Kyndra is naive enough to think that she wouldn't find out. Jessica goes on to explain that she is more angry that Kyndra talks so much trash behind her back and acts so friendly to her face. At the same time, Cameron tells Nick W. that he really likes hanging out with Jessica, but is annoyed that she is always accusing him of hooking up with other girls.

After pre-date preparation with Raquel, Tessa and Derek's date goes perfectly - until he asks her why she doesn't hang out with Kyndra & Friends. Tessa explains she was hospitalized for three weeks due to an allergic reaction and once she got out, they ditched her. Derek jokes that he'll never hang out with those girls again, and then seriously asks Tessa out for another sushi date. Not wanting to end the night just yet, he invites her to his place and she accepts.

Meanwhile there's trouble in paradise as Cameron's date with Jessica doesn't go quite so well. When she half-jokingly says he'll go hook up with another girl after their date, Cameron complains about her nagging. She asks if he's willing to talk about Kyndra, but he denies that there is anything to talk about and the troubled couple spends the rest of their dinner arguing their respective points.

The next day, while Cami racks up $4,000 bill during an afternoon of shopping, she and Kyndra share their disgust for Derek and Tessa as a couple. Neither understands why any of "their guys" would hang out with Tessa and Raquel.

During a planned meeting at the park, Cameron ends things with Jessica, claiming that he doesn't want her to miss out on other opportunities. She's angry when he tries to turn the breakup around to relieve some of his guilt and sets him straight when she tells him things won't work unless Cameron changes. He admites he doesn't want her to be out of his life for good, but recognizes that things aren't working.

Afterwards, Cameron, Nick W. and Derek talk about their relationships. Derek says he's happy with Tessa, but he hates it when people start to gossip about his new relationship. Cameron agrees, saying that people always said he was dating Jessica when he was only seeing her. When Derek and Nick W. call him out, he eventually admits that he was dating Jessica and is glad their relationship ended.

Derek hosts a barbecue, complete with Kyndra, Cami and Nikki. Before Tessa arrives, the gang teases Derek about dating her, and once she shows up, the girls say the party is boring and quickly leave. Upset by Kyndra and Co., Tessa tells Raquel that she doesn't like that Derek's friends rag on him for having a girlfriend, but Raquel assures her that this is just the beginning of a great relationship.

Perfect as their Laguna love affair may have appeared, Raquel and Alex are headed for heartbreak. Raquel tells Tessa that she doesn't want to lose Alex but he feels "super-pressured" and he can't handle her right now. In between skateboard runs, Alex tells his friend E.J. basically the same thing - things are getting too exclusive and she's pushing him too hard to be the ideal boyfriend.

Kyndra and Cami want to see Derek and Tessa on the outs, too. The schemers reminisce about the days before Tessa came along when they used to be "shopping buddies" with Derek. Kyndra mentions that Raquel looked upset as school and wonders if she and Alex broke up.

On a chilly day, Raquel meets Alex on the beach for a much-needed talk.
He tells her he doesn't like the way that she pressures him and gets mad about everything. He wants freedom. Insisting that she doesn't want to act like a married couple anymore - that she's willing to change because he's worth it - Raquel asks Alex for a second chance. Afraid to break her heart, he gives in.

Later, Raquel recaps the conversation to a shocked-but-pleased Tessa who reports that things are great between her and Derek. Meanwhile Alex and his friend Stephen go for coffee and run into Lexie and her friend Rachel. The girls whisper about how cute Alex is and ask if he and Stephen will be at the bonfire. The guys promise to be there and it's obvious that some flirting is in store.

Leaving, Alex tells Stephen about his talk with Raquel, saying that he feels bad breaking up because she obiously wants to stay together.
Stephen warns him that cute girls and hot bonfire could mean bad news for his relationship.

Everyone shows up for the bonfire. To avoid feeling awkward around Kyndra and Co., Tessa and Raquel walk off, saying that their boyfriends are being cold. Alex tells the girls around the fire that things between him and Raquel are "dwindling down."

Raquel returns and asks Alex to go on a walk. She tells him that she knowns he's unhappy and, after much prodding, Alex admits that things aren't working and that it's too late to fix their relationship. He returns to the group a single man, and quickly starts to mingle with the girls, getting Lexie and a friend's number while Raquel looks on. He may be busy making post-bonfire plans, but it looks like Raquel's flame for Alex still burns strong.

Even though they called it quits, the drama between Alex and Rocky is escalating. Rocky tells Tessa she agreed to go on a date with Nick W. even though she's heartbroken over her breakup. Meanwhile, Tessa vents about Derek's inhability to talk about his feelings and says that she feels like the world is passing her by.

Alex tells his friend Stephen he's happy that he ended things with Rocky and confesses to flirting with Lexie at the bonfire. When he finds out that Rachel and Lexie are going to the Open Air Stereo show, Alex makes tentative plans to meet up with them. The girls agree to hang out but both think it's weird that Alex is creeping on Lexie right after this break up.

At the beach, Derek admits that he isn't really into Tessa anymore and wants to move on. Later when Tessa tells Chase and Raquel that she thinks Derek has been ignoring her, Chase consoles her by explaining the three-day rule: a guy must ignore a girl for at least three days in order for it to mean he's not interested; if it's any less than three days, he might just be tired or busy. Tessa takes little comfort in the advice and says she may not be able to wait three days to find out.

Later on at the Open Air Stereo show, Derek ignores Tessa and Alex snubs Rocky at the door, heading straight for her ex-best friend, Breanna.

Disappointed that he can't find Lexie at the concert, Alex keeps an eye on Rocky instead. When he sees her flirting with Nick W. he storms out of the show telling his friends that, "Rocky's a slut." Rocky spots him leaving and walks outside but he's too buy telling his friends she's "desperate" to notice. Heartbroken, Rocky drucks behind a parked car and cries.

The day after the show, Tessa and Rocky discuss their boy problems. Rocky says she needs to get an answer from Derek. Tessa assures her there are more fish in the sea. While Rocky is making it clear that she doesn't want anyone but Alex, he is making it clear to his friends that he wants nothing to do with her. He tells them she's crazy and that it wasn't cool for Nick W. to start chasing after Rocky so quickly.

Taking Rocky's advice, Tessa drives to Derek's to get a straight answer about their relationship. She admits she likes him, but she needs to officially be with or without him - not in between. Derek tells her he'd rather be friends and, with one simple hug, another Laguna relationship bites the dust.

It's time for spring break and the Laguna Beach crew is heading south to Cabo San Lucas, Mexico, for a weekend of fun and sun. While packing, Kyndra reveals that Tyler will be in Cabo, too, and Cami suspects that it's jealousy that's putting him there because he doesn't want Kyndra hooking up with someone else.

Tessa plans to visit her family in Virginia for spring break, but admits to Chase that she wishes she was still dating Derek so they could be togehter in Cabo. Even though he's ben cold to her lately, Chase says he thinks Derek will come around after spring break and admit he misses her.

Once in Cabo, everyone quickly gets to swimming and flirting, especially Kyndra and Cameron - right in front of Tyler. Annoyed, Tyler takes his crew in search of new blood. When they cruise by later to flaunt their finds, Kyndra takes Tyler aside to tell him he is acting inappropriately, but he doesn't take her seriously.

From that point on, Kyndra is overly adamant, letting everyone know she is single as she heads straight for a club, where she flirts heavily with Cameron. As they're about to leave together, Tyler calls her a slut! And instead of turning on her heel, Kyndra insists that they talk. During the conversation, Tyler swears his love for her and she gives in. As the reunited couple makes out on the dancefloor, Cameron is left in the wings with a confused expression on his face.

The next afternoon Derek, Breanna, Kelan and Lexie spend their afternoon in the water on wave runners and hanging out on the beach. The good feelings of the day together spills into the night when Derek tells Breanna at the club that he wants to kiss her - and she doesn't object.

While they cuddle, a frustrated Kelan hits a breaking point Lexie, who is always giving him the could shoulder. When Derek says she's shy and urges him to make the first move, Kelan admits that he just can't find the courage.

Meanwhile, while partying with her girls, Kyndra gets word that her now on-again boyfriend Tyler has arrived. Even though her friends try to stop her, Kyndra looks for him and is shocked when she finds Tyler on the dance floor making out with another girl.

Reflecting on the Cabo developments in the light of day, Lexie asks Breanna what she thinks will happen when they return to Laguna. Breanna says she doesn't care about huring Tessa's feelings and the girls agree that Tessa should have gotten over Derek.

Kyndra apologizes for the drama between her and Tyler while waiting for a cab home with Cami. But Kyndra changes the subject when Cami reiterates how bad she things Tyler is for her, a move that blatantly underscores the fact that the vacation is indeed over.

It's springtime in Laguna, which means flowers are blossoming, prom is nearing and drama is in full bloom. The girls wait to see the elaborate ways their potential dates ask them to prom and the guys vie to be the most creative by popping the prom question through stunts like fake tattoos and having names placed on a theater billboard.

The biggest question of all comes when Alex asks Rocky to meet him at the beach. Alex is quick to compliment and gush about how much he's missed her, and admits to having made a huge mistake. When he says he wants to be a couple again, Rocky says she can't guarantee anything, but is willing to give it a try. Later, Rocky confesses to her mom that she thinks Alex may be trying to win her back just in time for prom, but she decides he's worth the risk.

At the salon, Breanna asks Lexie how Derek asked the big question. When Tara responds for her, Breanna is quick to point out that, despite their Cabo hookup, she isn't crushing on Derek anymore. Lexie assures the group of girls that she's only looking for friendship, but when the guys go to order their dates' corsages, Derek reveals a different set of plans for the evening.

In the hopes of making things right again with Rocky, Alex creates the ultimate prom proposal. With a little help from Tessa, Alex decorates a volleyball net on the beach and drops off a ball inscribed with an invitation to meet him at the court. Rocky's overwhelmed when she sees Alex standing next to his creation with a bouquet of flowers, and it looks like their relationship is on the road recovery.

On the big night, everyone shows up at Lexie's for pictures before heading off to the dance. Throughout the prom, Rocky worries that Alex isn't being himself and gets upset when he leaves her without notice. Alex thinks she's overreacting, but it's not until the after-party at Derek's that they finally hash it out. While the couple argues outside, Tessa and Derek get extra-friendly since Lexie went home early and is now out of the picture.

When the group hears the drama is heating up outside, everyone wants to take a peek. Despite Cami's effor to break it up, Rocky still has more on her mind. Ready to head back into the party, Alex patches things up by promising he'll make things work.

There's never a dull moment in Laguna, and this weekend is no exception. Open Air Stereo is set to perform a show in LA for major record labels and the whole crew, except for Rocky (who's on the mend with Alex), is planning on road-tripping to the event. Tessa's excited for the weekend, but after hooking up with Derek at prom, she's a little worried that things might become awkward around his Cabo fling, Breanna.

Before LA, Lexie and her dad take the girls on their boat for some fun in the sun. When the girls give the rundown on their crush lists, Breanna dismisses Tessa's 'claim' over Derek. Cami agrees, saying Tessa's going to be scraping the bottom of the Laguna boy-barrel by the end of the year.

On the night of the concert, Open Air Stereo prepares backstage while Derek and Tessa get cozy next to Breanna in the VIP section. Derek tells Tessa he's missed her and ignores Breanna's requests to talk to him. As the band rocks out in a stella performance, Breanna's eyes are glued to a different show: Tessa and Derek locking lips.

Back in Laguna, Rocky meets up with Tessa and their friend Jade to dish on the concert and night's date with her on- again boyfriend, Alex. Rocky gushes about how happy she is with Alex and listens as the girls recap Tessa's make-out session with Derek under Breanna's evil glare.

Meanwhile, the band members eagerly await a call from their agent and are thrilled when they learn they've landed a deal with Epic Records. Kelan drives over to tell Derek and Cameron the good news and, although they're happy for him the guys are concerned that if he takes a break from high school he'll never go back. Chase shares the moment with Tessa, and the two are torn between excitement over his success and sadness over his departure.

Over lunch, Rocky tells Alex that it's nice to finally have a friend who doesn't hate her boyfriend, unlike Breanna, who despised every guy she dated. But, despite their issues, Rocky says she still misses the good times with the old Breanna. A brown-nosing Alex says he missed their good-times during the break, but Rocky reminds him that it takes two to make a relationship work.

Despite a drama-filled year of hookups, breakups, and trash-talking, the Laguna Beach crew has made it to another summer. But this year, the end of school doesn't signal all fun and games - with half of the group going off to college or rocking it out in LA, it's time to settle old feuds and say goodbye to good friends.

While Kyndra and Cami have an 'intense' game of tennis where the net sees more action than Cami's serve, Cameron goes board shopping with Nick W. and stops by Kelan's to hang out and reminisce with the guys. At Alex's house, Rocky surprises him with a new iPod while he throws on his cap and gown.

On the big night, Kyndra, Cami and Cameron head off to watch the senior guys graduate. Kyndra sparks some controversy with Cameron when she tells him he better stand up and cheer, and an offended Cameron calls her out for not even hanging out with his boys on a regular basis. When Derek and Cameron scarf down some pizza the next day, Cameron explains his beef with Kyndra and concern about throwing and end-of-year BBQ with her.

When Rocky's mom asks about the possibility of her staying together with Alex, Rocky is skeptical about the impending college scene complete with new girls. Not wanting to get her heart broken once again, she tears up, afraid he's going to let her loose sooner rather than later.

At the barbeque, Kyndra and Cameron give a toast to their senior friends as they present a video of pictures from back in the day. Kyndra once again wants him to cry, but Cameron assures her he's upset about hteir graduating, even though he's not letting tears loose.

On the beach, Kelan worries about failing out of college in San Diego and confesses he won't be home for a while with all the work he'll have to do for Open Air Stereo. Cameron argues that no other group has made their mark as much as their crew and worries he'll never live up to his junior year.

On her way home, Rocky receives a surprising letter from Breanna. While she reads the apology note to her mom, she's psyched to repair their relationship, but ultimately worried about Tessa's reaction to the news. Meanwhile, Tessa arrives at Chase's house to find him freaking out about the future. He's just received a call from his manager, who has told him to pack a big bag for LA - he'll be staying there for a while. Chase is pumped to live his dream, but knows he won't be seeing the sunny beaches of Laguna again any time soon.

Rocky makes the trip to Breanna's house to make peace face-to-face after the letter. Breanna apologizes for the past year, and Rocky decides they pair should pick up where they left off. Even though Alex tells her not to worry about Tessa, Racquel knows she has a rocky road ahead with her best friend. When Rocky finally breaks Tessa the news, her fears are confirmed. Tessa is less than thrilled at the idea of Rocky hanging out with Breanna, a girl who who's outwardly said she hates her. She cuts the conversation short and heads out the door.

Cameron starts the first of many goodbyes as he packs Kelan's car for college. Feeling bummed out, he dials Jessica and asks her to meet up at the beach. Sharing a blanket, Cameron confides in Jessica about watching all of his friends leave Laguna. Feeling stuck, he worries he'll never be able to replace what he's had and enjoy the year ahead. Jessica argues it won't be that bad, and Cameron confesses that she's been one of his best friends despite their on-again, off- again 'relationship'. When he asks if they'll ever rekindle the romance flame, Jessica gives him the big N-O.

Cameron's next stop on the goodbye train leads him to Chase's, where the two discuss their stance on relationships. Cameron says he's feeling comfortable with old hookups and holding out for 'the one' while Case packs up his bongo. When Cameron asks if he's talked to Tessa, Chase realizes he's forgotten to make the call.

Kyndra, Cami and Co. dine at the St. Regis and talk about the year ahead. They're all scared for senior year and change, but anxious for fun times ahead. When Lexie brings up Breanna and Rocky's reunion, Cami says she's done talking about them and can't wait to be rid of them.

Rocky meets Alex at the beach for one last time as the sun sets over the water. The two finally talk about their plan for the year ahead and decide they should try sticking it out. Alex surprises her with a ring to remember him by, but Rocky assures him she won't have any trouble keeping him in mind.

Chase gives Tessa a quick call to say goodbye and leaves Laguna without seeing her. As he heads to LA, Tessa listens to her voicemail on the beach and doubts she'll be seeing him again any time soon.

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