Episode 7

Opening credits on the coconut tree wall in Jacoby's home. Donna and James enter. They ask each other where to start looking. They find a box full of margarita umbrellas, all labelled. Donna finds the controls for the ambient noise. James turns it off. Donna finds the coconut that Laura mentioned in her tape. It contains a tape and half a heart necklace. Bobby watches James and Donna pull away.

Jacoby creeps around the bushes towards Madeleine. A man in a balaclava and a trenchcoat beats him mercilessly. Jacoby cannot move or cry out.

A wheel spins on a craps table. Big Ed has lost another bet. Cooper wins again, and a woman whispers in his ear. Cooper tips Jacques the poker ship missing a corner.

Audrey, dressed in lingerie, visits Blackie's office. Blackie says the owner will visit that night, and asks her to pick a card spread across the table.

Cooper talks to Jacques about his business with Leo. Cooper instructs Jacques to meet him at the water processing plant in two hours. Jacques tells how the bit of the poker chip got into Laura's stomach: Leo had made her bite down on it when the bird was attacking her.

Audrey waits alone in a room.

Shelly washes her hair in the sink with the gun next to her. Leo sneaks up behind her and grabs her mouth.

On their stake-out, Andy tells Harry that Lucy still hasn't talked to her. Jacques pulls into the plant and is surrounded by cops. Jacques attempts to escape, and Andy shoots him.

James, Donna, and Madeleine listen to the tape from Jacoby's coconut. Laura insults James and talks about how Leo is trying to kill her, but that gets her off. Doctor Hayward leaves, and tells Donna to check on her mother. James and Donna embrace. James tells Madeleine that Jacoby was trying to help Laura, and Donna asks how he got the necklace.

At the lumbermill, Leo unloads his gas. Shelly is tied up inside. Leo winds up a bomb. He tells Shelly she has one hour to think about her behavior, and that he will kill Bobby Briggs.

Nadine is wearing a beautiful silk dress. She puts a note on a tray, and pours a lot of pills into a bowl.

Hank counts money into a suitcase. He thanks Josie for the $90k, and tells her it seems light. Hank talks about how his time is now worth more than $90k. Josie insists that they had an agreement. Hank surprises her with a blood handshake.

Catherine is looking through the accounting office for the ledger. Construction workers watch them fight through the blinds. Catherine asks Pete to have pity on her.

At the stationhouse, the officers tell stories about the arrest. Lucy is impressed, and Andy kisses her. Lucy confesses that she is pregnant. Andy walks away in silence. Lucy answers the phone: Bobby, impersonating Leo, tells her to tell Harry to check out James.

At the hospital, Cooper and Harry interrogate Jacques. He says that Leo had hit him with a whiskey bottle, and he had passed out. When he came to, Leo and the girls were gone.

Dr. Hayward says that Dr. Jacoby is stable.

Cooper says that Leo must have taken both of the girls to the train car himself. Dr. Hayward reports that Jacoby saw Laura Palmer at the park.

Catherine and Pete are looking through the shelves. They cannot find the book. An anonymous caller tells Catherine that the book is in the shed. The caller is Hank.

Catherine gets ready to meet him, and packs a gun.

Hank talks to Norma about his time in the joint, trying to charm her. He reminds her that they've been together 20 years.

Big Ed returns home and finds Nadine on the living room floor. He phones an ambulance.

Lucy gives Harry the message from "Leo." She says she heard a clock striking in the background, like the clock at the park. Cooper instructs Hawk to set up a perimeter around Easter park. James approaches Harry, and Cooper asks to talk to James instead. Leland asks Harry if he's found the killer. Dr. Hayward tells Leland to go home to Sarah. James gives Cooper a copy of the tape. Cooper asks James about Jacoby seeing Laura. Cooper shows James the ziplock bag, and asks why it was in the bike.

The Icelandic investor is about to sign Ben's contract in Blackie's office. Hank calls Ben to tell him that Leo Johnson will get a house call, and to black flag the fire bug.

Bobby enters the Johnson house. Leo goes after Bobby with an axe. Just as he's about to strike the final blow, Hank shoots him. Bobby leaves, as the old brothers embrace each other on "An Invitation to Love." The biker guy dies.

Shelly struggles in her bonds. Catherine approaches her with a gun. The bomb explodes, and a fire spreads. Catherine releases Shelly, and they run out.

A fire alarm goes off in the hospital. A dark figure tapes Jacque to his bed and smothers him with a pillow. It is Leland.

Pete asks a firefighter if anyone is in the mill. Pete says he will check inside for Catherine.

Benjamin signs the contract. The Icelandic investor leaves with two whores. Ben says he will celebrate with the new girl.

Ben enters Audreys room. She is dressed as the Queen of Diamonds.

Cooper walks down the hallway to his room while talking to his recorder. There are no songs. He finds Audrey's note on the floor. Cooper answers the door, and a dark figure shoots him three times.