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..."