The teenagers at Raven Lake are being murdered, one after the other. Carly and Jack decide it's time to file for divorce. Paul proposes to Meg after they make love in the barn. Maddie and Casey make up.
Carly drops by Jack's house. It's all business, they talk about their kids. When Jack leaves the room, Carly signs for a delivery at the door. It's a bottle of champagne from Eve, Carly reads the card, which thanks Jack for listening and wishes him a happier life, but Carly lies to Jack about knowing who it was from. But when he tells her, she admits she read the note. He says she's just a friend. They talk about how weird it feels that another woman is attracted to him, and Carly says maybe it's time they filed for the divorce, Jack reluctantly agrees. They discuss it and Jack says maybe it is time to try something new as he picks up the bottle of champagne. They have a tender moment as he thanks her for being a good mom. Carly leaves; then looks back at him through the window pensively.
She goes to Java and Simon is there. He asks her what's wrong with her, she tells him that she and Jack are finally going to file for divorce. Simon asks her isn't this where you were headed all along? She tells him she's not sure what she wants. Simon tells her she should think of it as a new and exciting adventure and share a drink with a foolish Aussie who wants nothing more than to see her smile. Carly says she's not in the mood, she'd prefer to be alone. Simon says he has never been good at that. He tells her to be nice to herself and to call him if she changes her mind. Holden comes over to Jack's house and they drink a glass of the champagne Eve sent. After Holden leaves, Jack pours it down the sink.
Paul brings Meg flowers, tells her his idea about buying the paper to help Emily. Meg throws the flowers at him and storms away. He chases her down. She doesn't want him to do it, she believes it will give Emily one more excuse to have her claws into him. He says that's they have more problems than that, what he needs to do is put a ring on her finger. He teases her into a better mood and they share a passionate kiss. They go out to the barn and make a pallet, make love in the hay, and there he proposes, ring and all. Meg accepts.
At the lake, Louis watches Maddie and Casey through binoculars, Gwen sees Will and Jade together in the woods. Maddie tells Casey the knife that fell out of her backpack was planted there by someone wanting her to look like the killer. Casey throws the knife far, far away. When he asks Maddie who would do that, she tells him that she was raped. He takes her to the cabin and locks the door, asks her why she didn't tell him. She says because she didn't want to remember. Being close to him reminded her of the rape, and she got so confused, began to wonder if she had killed someone. Casey hugs her. She tells him Louis is the one who raped her. They make up, very sweet to each other.
Luke is sitting by the lake alone, really down after his run in with Kevin, Will and Jade walk up, they try to comfort him, but he wants to be alone. Jade asks Will as they walk on how many ways is he going to tell her she's not good enough? She stomps off.
One of the girls spots Louis watching her swim, Gwen comes along and they go tell the others. They decide it's just some old guy taking pictures of girls in bikinis. Gwen starts teaching one of the guys how to play the guitar. Will walks up and asks her if she's staying there for the night. She tells him that she is, and he says he's glad. She walks away. She still won't have anything to do with him. He follows her and sits down beside her, tells her how much he loves her. Gwen goes back to the cabin and finds one of the girls dead.
Casey and Maddie leave the cabin and go into the woods. They find Zack dead, a knife sticking out of his back. Maddie is worried that everyone will think she did it. She and Casey start looking around the area. Maddie turns around and she is alone. She starts screaming for Casey, looking around, but he's gone. She picks up a big stick, scared out of her wits. She hears a noise behind her, Casey falls forward, bloody, either injured or dead.
Luke is watching Kevin and a girl friend as they make out in the boat. He hears a noise behind him; it's The Slasher with his knife behind a tree. Suddenly, Luke hears a scream. The girl has accidentally hits Kevin in the head with the paddle after roughhousing around and knocks him out. As Luke runs toward the lake, The Slasher starts to chase him but stops. Kevin jumps in the lake and pulls Kevin to shore, gives him mouth to mouth resuscitation, trying to save his life.