"Evening, Holly G. I'm afraid you're under arrest."
"It's not who you are, it's who people think you are. Give 'em some attitude." Lucas Buck to Caleb Temple.
Holly was Gail Emory's childhood friend. When she goes to Holly's house to talk to her about Caleb, her mother tells Gail that Holly died in a car accident. Mrs. Gallagher takes Gail to Holly's room and, while she goes to get lemonade, Gail begins snooping and finds a letter to Holly from Lucas. Gail later goes to the Sheriff's office, shows the letter to Lucas, and questions him about Holly. She isn't satisfied with Lucas' answers so she hires a diver to find Holly's car. After the car is pulled out of the river she opens the door but there is no one inside the car. She sits down in the driver's seat and realizes that the seat is pushed back too far for Holly to have been driving the car.
Gail visits Mrs. Gallagher again and tells her what she has found. When Mrs. G leaves the room for a moment, Gail takes a phone call meant for her and finds out that Holly is still alive and living in a sanitorium. When Gail goes to see Holly she finds that Holly is brain-damaged as a result of the accident. While she is there Lucas shows up. They walk outside and Lucas tells Gail that no one in town knows about Holly because her mother wants it that way. When Gail tells him she knows he was driving Lucas tells her that he tried to do the right thing by finding the sanitorium and trying to visit Holly at least once a week.
They get into Gail's car and Lucas drives along the road he and Holly took that night. As they approach Johnson Bridge, he closes his eyes and begins telling Gail his version of events. Gail becomes frightened and as Lucas is saying Holly grabbed the wheel, Gail grabs the steering wheel. Lucas stops the car just before it goes through the guardrail. He tells Gail that Holly wanted them both to die because she was a romantic. He then kisses Gail and tells her that he is a romantic, too.
Gail goes to Holly's house the next day and tells Mrs. Gallagher that she saw Holly and she asks Mrs. G to bring Holly home. Holly's mother refuses to acknowledge Gail's plea but later that night we see her and Holly together in Holly's room.
Caleb's sister, Merlyn, is upset with him for giving in to Lucas. Caleb tells her he doesn't know what came over him and she replies that Lucas is a part of him and the sooner he accepts that, the better.
Lucas later gives Caleb a fancy new bow and, in the guise of offering help, begins driving a wedge between Caleb and Boone. As the archery contest nears its end, Caleb and Boone are in the lead. Caleb realizes Boone is a true friend when Boone tells him that Caleb's winning the contest is as good as winning the contest himself. Caleb deliberately misses a shot and then walks over to Lucas. He tells Lucas he doesn't want to win his way and gives him back the bow. Boone wins the contest and he and Caleb walk off together.
We later see Lucas bemoaning the fact that Caleb rejected him while Selena drips wax from a burning candle onto his chest.
When Ben returns to the sheriff's office, Lucas asks him what happened. Ben tells him that Waylan hit him and Lucas tells Ben that he had better take care of it. Later that day, Dr. Matt Crower talks to Ben and tells him that Ben, Jr. needs a better role model than Waylan Flood.
That afternoon, Ben returns to Waylan's shop and tells his son that Waylan is a coward and a bully. Waylan becomes angry, grabs a piece of wood, and starts toward Ben. Then he sees Lucas Buck drive by on the street behind Ben. His attitude immediately changes and he tells Ben that he'll won't lay a hand on Barbara Joy or bully Ben, Jr. again. After Ben leaves, Lucas again drives up and stops in front of Waylon's shop. Waylan becomes frightened and when he backs up into the shop he loses his balance and falls on a saw that he had left running, cutting his hand off.
Later, at the fair, Ben Jr. tells Ben that his mother appreciated Ben going by the hospital to see Waylan.
"Just remember, a good loser is still a loser." Lucas to Caleb