July 31st, 1999
Megan wakes up with a hangover and embarrassed because of last night. Luke comes over to see Megan, but Isabella immediately ropes him into cleaning up. Before Luke leaves to the cabin to lock it up before the storm, Isabella suggests Megan should go with him.
While helping lock up the cabin, Megan finds the old walkie-talkies they used for playing secret agents in the woods, and the two go back into the woods for old times' sake. Megan suggests they race to the docks, but Luke gets lost. As they keep talking on their walkie-talkies, Megan tells Luke Jeff dumped her. Right after Luke warns Megan about Ned and his dislike of tresspassers, he suddenly runs into him himself. Ned simply adjusts the frequency on his walkie-talkie and tells him to leave his property.
Luke joins Megan at the dock, where they reminisce about carving their initials into the dock when they were eleven. Luke admits remembering what almost happened the previous night and they kiss.
—
December 31st, 1999
While preparing for the New Year's Eve party, Megan tries to confront Isabella about what happened at the Plunge, to no avail. While buying supplies for the party, Luke and Megan talk about what Megan thinks happened at the Plunge, to which Luke adds by saying Isabella is happiest when their relationship is in a rough place and might want to break them up, so that she could have Megan all to herself.
In the mall parking lot, Luke goes back to look for his wallet, as Megan, wearing a Y2K party hat, bumps into Ned. Ned goes into a tirade about Y2K being a crisis, not a party. When he grabs Megan by the shoulders, Luke intervenes. During the scuffle, Ned tells him he behaves as of the rules didn't apply to him, but he's in for a rude wake up call.
After their original arrangement for the party falls through, Luke suggests they have the party at the old cannery his father just bought. After a dressing down from Steve for the scuffle at the parking lot and the reputational damage to his family, he swipes the key to the cannery with Brent's help. Meanwhile, Megan takes a pregnancy test and finds out she's pregnant.
At the pary, Megan confronts Isabella about the plunge, and Isabella reveals Luke was the one who kissed her, and she didn't think it was important enough to share. When Megan doubts her, Isabella blames her for not trusting her anymore. While looking for Luke, Megan overhears him talking with the other guys about Megan and Isabela, claiming to having both of them wrapped around his finger and being able to date both of them at the same time, admitting to having kissed Isabella at the Plunge.
Shocked, Megan finds Isabella and asks her to help her get revenge on Luke. After the countdown, Megan takes Luke to the cabin for a private celebration.
—
July 31st, 2000
Steve shares his PI's discoveries with Brent: Megan has become a hacker for hire under the influence of his neighbor and enemy Ned. He then brings up the time Luke defended Megan from Ned at the parking lot and theorizes Ned snapped, found Luke at the cabin, and killed him.
Megan's lawyer Tom takes her to the Sheriff's office where they learn she is officially charged with a misdemeanor for making fake IDs with a reproduced watermark. Megan starts panicking, as she wouldn't be able to get her scholarship with a criminal record, but Tom informs her she can't do anything about it.
Megan runs into Jeff who's buying supplies for college and tells him her scholarship is compromised because of the misdemeanor charge. Jeff then admits it was him who gave her up as a deal with the Sheriff after getting busted with a fake ID himself.
Visiting Megan, Brent informs her Ned stole millions of dollars of intellectual property from his last employer and put his boss in the hospital. He knows Megan didn't kill Luke, but warns that if Ned is going down, he could try to take her with him.
At Ned's, Megan asks if him if he can hack into the database and erase her misdemeanor, to which he replies it is too late, questioning the need for Megan to get a degree at all. Megan then tells Ned he is being investigated. When Ned goes to his computer to dig up dirt on Steve, Megan notices for the first time that Ned has security cameras installed all around his residence. When she notices Steve's car on one of the cameras, Ned tells her to sneak out the back door, where she comes face to face with Brent, who lets her slip away. Steve accuses Ned of killing Luke and threatens him he'll prove it.
On returning home, Megan gets the dreaded phone call from her principal: her scholarship has been rescinded.
