Ryan tries to come to terms with his feelings for Lindsay (recurring guest star SHANNON LUCIO). Now that she may become a member of the Cohen family, their attraction is rather awkward. Although Sandy knows they're dating, Ryan and Lindsay keep the relationship hidden from Kirsten.
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Meanwhile, Caleb learns that the criminal charges against him have been dismissed. And in an effort to impress Alex (recurring guest star OLIVIA WILDE), Seth tries to cultivate a "bad boy" image by dressing like Ryan, getting drunk and stealing Caleb's prized sports car. Marissa sees Jimmy and Julie kissing aboard his boat and is hurt and angry with her father. Jimmy finally realizes that after all the trouble and heartache he's caused, the best thing he can do for himself and his daughter is to leave Newport and move to Maui...but not before a big going-away party at the Cohens' house. Devastated by the situation with her parents, Marissa comes to the party intoxicated and yells at both of them. Later, Jimmy and Marissa reconcile on the beach. And the following morning, Marissa goes to her new surrogate family--the Cohens--for support. Rock group MODEST MOUSE (themselves) performs "Paper Thin Walls" at the Bait Shop.
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