Al telephones Chachi and tells him that he has received a postcard from Richie in Hollywood. A brief recap of the previous two episodes is given. Richie and Nancy talk on the beach. Nancy tells Richie that her oceanography class is going on a cruise for practical experience to Pango Pango the next morning. She wishes him good luck, and they share a goodbye kiss. Potsie and Ralph run over and tell Richie that Fonzie is going to jump over a shark. Richie tries to talk Fonzie out of it. Fonzie says he has to call the Kid's bluff. He doesn't want to return to Milwaukee a double failure (the first failure was his being passed over for the "James Dean
" contract). Fonzie challenges the Kid to jump over the shark first. Howard and Marion return to the pier after buying souvenirs, and Joanie gives them the news about Fonzie. The California Kid bails out before attempting the jump. Fonzie says he still has to do the jump to show he's not a quitter, and Richie drives for him. Fonzie gets set for the jump and gives Richie the thumbs up sign. He successfully makes the jump and is congratulated by everyone (except the Kid and his followers) on the beach. Richie ponders signing the movie contract which pays $200 a week. The contract is for five years, but there is no guarantee that he will be successful. Richie has already registered for college. Howard and Richie talk it out. Richie later tosses the contract into the ocean. He tells Fonzie that he really wants to be a journalist. Fonzie says he should do something he really likes to do. Back at Arnold's, Al puts some money in a coffee can as everybody returns. Chachi is given a blue "Hollywood" sweatshirt and says he will cut off the sleeves. He gives Fonzie a list of eight new phone numbers. Howard gives Al a "Hollywood" shell, and Potsie and Ralph bring the mouse ears that he wanted them to get. Fonzie takes a poster of himself off of the wall and shuts off the lights before leaving.