An investigative reporter named Catherine Larsen is working on a story she has named "The Falcon Manifesto". The story details the sale of U.S. military technology to foreign governments by man named Edward Falcon. Because of her story, Falcon has put a contract on her life and the NBI wants to put her into their protective custody. However, Catherine trusts no one and heads off to Catalina where she hides the manifesto in an old sofa.
While in Catalina, she takes a fishing trip on a boat. When the boat hits a dumpster that is floating in the ocean, the boat is in danger of sinking and Mitch, Summer and Matt in the scarab are the first ones who arrive on the scene. At the boat, Mitch finds Catherine bravely working in the ship's hold trying to patch the hole with something. Together with Mitch, she manages to patch the hole using Mitch's wetsuit. While filling in the incident report, Catherine tells Mitch her name is Kate McCoy because she is not willing to tell him her real name. She also accepts Mitch's dinner invitation, and they spend a romantic evening together.
The next day, Catherine joins Mitch at the beach where she just enjoys watching him all day. When the day is finally over and Mitch has closed his tower, he tries to wake up a sleeping Catherine only to find out that she is dead. Mitch feels responsible for her death as he is a lifeguard and she died 5 feet from his tower. When the autopsy of her body is done, Garner and an NBI agent named John Mathers tells Mitch that she died of a heart attack but Mitch finds it very hard to believe.
When Mitch thinks back to the day again, he remembers that her sun screen had a little hole in it that it didn't have before and the sunscreen is not with the evidence. Mitch also remembers that he saw Mathers on the beach the same day dressed as a tourist. He figures out that Mathers works for Falcon and when Garner tells him that Mathers has gone home to Catherine's house in Catalina, he goes after him. When Mitch arrives at her house, he sees Mathers burning the evidence. Mitch manages to stop him in time and "The Falcon Manifesto" is saved.
Meanwhile, Matt wants Summer to buy Eddie's houseboat with him. They can get it for a good prize just because they are lifeguards. However, Summer hesitates a lot and doesn't enjoy living on the houseboat just as much as Matt does. His father helps him to buy the boat but Summer doesn't have to move in right away. She can wait until she feels ready to do it. Matt names the boat "Summer Breeze".