[BABE IN ARMS]
- Gracie, a young girl, goes missing, and the Cliffhangers and a few other groups are told to go in search of her. Before this, we understand that Shelby is afraid of heights, after she refuses ti climb a rope course. We are introduced to Chloe, Peter's ex-wife, who had come back to Horizon to be with Peter, and Chloe, Peter's current girlfriend, who is obviously not too happy about Chloe returning.

For punishment after violating the rules, Scott becomes Frank's errand boy, and is timed while doing certain tasks. In the middle of one, Juliette, who is competing with Shelby to get Scott, turns up with a strategically planned empty glass of water and ends up kissing Scott, much to his shock.

Shelby, of all the people, disocvers Gracie hanging from a small cliff, and has to overcome her fear of heights in order to save her. However, Ezra sees her doing it, and she stubbornly gives the frightened girl to Ezra, and makes him take the credit for saving the girl. The end of the episode sees Shelby going out for a cigarette, but, when unable to find one a lighter, crawls into the arms of a wooden bear, and cries softly to herself.