Karen walks into the lounge and Eve is there. She told Karen Scott sent the pizza to her to say goodbye and then remembers to tell her Jagger called. Karen gets mad and snaps at her for not remembering to tell her yesterday and leaves. She returned and apologizes. Eve says its OK and she should be the one to apologize. Karen explains about her relationship with Jagger. Burgess comes in and says when they are ready for a work break to let her know.
Joe told Frank he can't believe that their mother spent the night in jail instead of calling them for help. Mike told them he had changed a fifty dollar bill for her, but he didn't tell the police it was hers... she did. The FBI comes and told them it was ransom money for a kidnapping. They question them and just as Frank is about to tell them he gave the money to Mary, she fakes a coughing fit so that the FBI leave the room. She told everyone to keep quiet, she doesn't want them to know it was from Frank.
Lucy and Scott argue because she wants to take Serena to the park for a picnic with Lee, Gail and Karen. He says no because he need to recuperate and Serena needs time to relax. He also doesn't want people fawning all over her. The FBI calls to tell him they recovered the stolen money and need him to come down to the station. He leaves Serena with Lucy and told Lucy to behave herself. After he leaves, she calls Lee and invites him to a picnic in the park.
Rex is talking to someone about the diamonds, half of them have been sold on the black market and some have been found by the Hong Kong police, just as he requested. Then he is advised to lay low for a while. Rex informs his associate that his next plan is going to make the diamonds look like peanuts. He jokes about robbing the bank of Lucy Coe.
Rex calls Lucy pretending to be her investor and invites her to lunch, she says she can't and invites him to the picnic when she finds out this is the only day he can make it. He accepts and hangs up. He calls Danielle and told her she has to make the picnic also. She tries to decline but he threatens to let the police in on everything.
Jake is looking at rings when Danielle shows up. He covers saying the salesman is a patient. Her phone rings... its Rex. She has to go. He told her he has a surprise for her and asks if everything is OK... she says its never been better and leaves.
Serena asks to go and play with the other kids and Lucy says OK as long as she stays where she can see her. Lee told Lucy there is nothing they can do if Scott really wants to go back to Canada. She told him she believes that Dominique would rather he kept Serena around the family.
Frank told Scott the money came from a tenant and he asks if it was Eve... yes it was. Mary and Mike are let go. Mike tries to apologize and Mary says not to worry and reminds him of his promise of a night out.
Burgess is supervising Jake, Karen and Eve assessing a patient. Jake and Karen give their diagnosis and Eve disagrees. She says they need more information, she went and asks more questions and comes up with a new diagnosis. Burgess compliments her and then the FBI shows up and arrests Eve. Karen starts to tell her she will call her father, but he is already there and says he is the one who pressed the charges.
Danielle brought Serena back her ball and says here you go sweetie.
Lucy told Serena not to talk to strangers and takes her to play with Lee. Danielle gets upset and told Rex she almost wishes Serena did recognize her. Rex says since she didn't it is time for phase three of their plan. Danielle wishes she could just hug Serena and apologize and tell her everything is going to be OK. Rex says he is late for his meeting and walks over to Lucy and Serena. Lucy hesitates and introduces Serena as her friend, Serena greets him in German. They talk about the fireworks the night before and Lucy says she wishes he could have seen Serena's face since it was her first 4th of July. Then she thanks him for meeting them at the park...she wants to spend as much time as she can with Serena. He understands, and told her children are the future. Danielle is watching them. Lucy asks if he has any children, he says no but would like to have one just like this one some day.
Scott asks to speak to Eve alone and told her to help him understand why she did this or she can make new friends in the big house. She explains how she got the money after Serena was home safe and sound, she just wanted to see the money and knocked it over accidentally. Some of it fell out and she picked it up. She got home and felt guilty but Frank was riding her about the rent money she owed him. When she did finally return it she replaced the money Frank took with some of her own. She tries to leave but Scott won't let her. She told him she would rather deal with the FBI.
Kevin told Mac about his feeling that Serena is still in danger, but he can't tell Scott because he would take off with Serena and that would hurt Lucy. If Scott would let Lucy keep in contact with Serena he would have sent Scott packing a long time ago. Until the kidnappers are caught it is up to them to keep her safe. Mac promises to keep his eyes open and told him that the diamonds are being sold on the black market in Hong Kong. Kevin thanks him and told him he has a meeting at the hospital.
Eve blames Scott for making her the black sheep, but he told her she wouldn't be if she had of sided with Joe at the hearing. He told her if she really needed the money she should have asked him for it, but she doesn't believe he would have lent it to her. The FBI returned in and Scott told them there was a mistake. He told them Eve helped him and he promised to pay her and he used the ransom money which wasn't supposed to be marked. They let Eve go. He told her it was really nice meeting her and leaves. She went home only to find her stuff on the porch with her lease saying VOID, she breaks down crying.
Danielle tries to see Jake but the nurse told her unless it is an emergency she has to wait. When she went to leave, she bumps into Kevin. He asks if she is OK, she says no. He offers to listen and introduces himself telling her he used to be a shrink. She says she doesn't think anyone can help her and leaves.
Rex is looking at old slides of Scott and Serena and says Smile while you can till I clean up all your mistakes.
Scott gets back to the lighthouse and asks Lucy where Serena is. She is upstairs with Gail. Lucy told him she took Serena to the park because she had a meeting there also. Scott flips because Lucy exposed Serena to all sorts of strangers. Then she asks him what he has in the box, he told her it is a piece of his plane. He went on to explain that his plane is in 6000 pieces because his secretary called and said it needed a complete overhaul....he doesn't even have a secretary. He told her he is still leaving with Serena.
Lucy and Scott argued over his plans to leave Port Charles with Serena. A desperate Lucy finally had Scott watch a videotape of Dominique that was made before Serena was born. Scott was moved when he watched Dominique's message to her unborn child. Frank tried to evict Eve and blamed her for Mary's ordeal with the police over the stolen ransom money. Eve told Frank that Scott had dropped the charges and that Frank had to take her to court to evict her. Julie intervened and stood up for Eve and convinced Frank to give Eve another chance, but he wondered why Julie was sticking up for Eve. Guilty over not telling Frank the truth about her wealthy family, Julie told Frank that at least Eve was not misrepresenting herself and also mentioned the importance of forgiving people for one mistake. Meanwhile, Chris bribed Eve to help break up Julie and Frank. Ellen talked with Kevin about her frustration with the interns. Kevin and Ellen deduced that the interns air of invincibility, and unresponsive nature towards her, could be traced to the hostage crisis. Kevin then offered to do a study on the interns.
Scott made an emotional visit to Dominique's grave and asked for her help in deciding whether or not to stay in Port Charles. Karen was still sad over Scott's imminent departure from Port Charles and wanted to say goodbye to Serena. Joe accompanied Karen to the lighthouse so that he could thank Scott for his help at the review board hearing. Later, Scott returned to the lighthouse and told Gail, Lee, Kevin, Lucy, Karen and Joe that he and Serena were staying in Port Charles. Joe saw the positive effect Karen's family had on her and hoped that they would help her get over her separation from Jagger. After making his final preparations for his important night with Danielle, Jake was upset when he returned home to find to her and Rex together. Jake asked Rex to leave and then proposed to Danielle. Despite feeling unworthy of Jake's love and devotion, Danielle accepted his marriage proposal. Rex visited Dominique's grave and expressed his resentment over not inheriting any of her money. Rex made it clear that nothing was going to stop him from getting what he felt was owed to him.
Joe continued to misread Karen's marital situation by thinking that she and Jagger were estranged. Joe helped Karen find an apartment and they then celebrated with wine and pizza. Karen and Joe's warm moment together lead them to a kiss. Mike told Mary that the city found out about his arrest record and had delayed the Recovery Room's liquor license. Mary told Mike that she still wanted to see him and did not care about his past or that he was Sonny's father. Mary and Mike decided to become partners as a way to obtain a liquor license for the bar. Meanwhile, Ellen vented her anger to Grace and Matt when she learned that Greg Cooper was deemed unfit to stand trial. Chris woke Julie up from her nightmare about Greg. Using the information he had learned from her file, Chris almost got Julie to open up about her past. Chris and Julie's quiet moment was interrupted by Frank. Chris's angry outburst at Frank caused Chris and Julie to part on bad terms. Julie went to treat an Emergency Room patient and was shocked to find out that it was Greg Cooper.