The episode opens with Michael Bluth being honored by his family for his work in getting the treason charges against his father dropped. At the party, Michael breaks into tears, which the narrator says is due to the fact that his family will now be part of his life for a long, long time.
The day before, Michael woke up to find George Michael in his bed. George Michael has fled his bedroom because, having reached "second base" with Maeby, has realized that she still intends to progress on their relationship in the privacy of their bedroom.
Meanwhile, on the television show Mad Money, Jim Cramer upgrades Bluth Co. from âDonât Buyâ to âRiskyâ. Michael asks his son if he has anything on his mind, and George Michael suggests moving out of town.
The family gathers at the penthouse for brunch. Lucille suggests throwing a party on the same boat to name Michael CEO. Michael actually expresses hope for the future and mentions in passing that the family can now sell their stock for $2 million each, although they shouldnât, since the company is moving forward.
Lindsay privately tells Michael she wants to sell her shares since she is almost 40 and wants to remarry. George Sr. also tells Michael he wants to cash out and move down to Cabo San Lucas. Michael assures them both that the honestly run family business will generate plenty of money, but George Sr. warns his son that there is no way Lucille will allow a clean business. She even stole the idea of selling frozen bananas from a Korean immigrant and then had him deported when he threatened to sue.
Down at the harbor, Michael finds Gob trying to flee on a boat that he has been living on. Michael asks Gob how he plans to pay for the boat and Gob replies that Stan Sitwell made a generous offer for his stock.
Michael calls his mother for advice. Her idea is to lease the boat to Gob through the company to show the shareholders the family is united. George Michael visits his father at the office, wanting to talk about moving. Michael tells his son the party is important to show how close the family is. This causes George Michael to confess that he and Maeby made out. In his astonishment, Michael tells his son to no longer act on his feelings. Still needing to keep the family together, Michael reluctantly suggests he bring Ann Veal.
Lindsay tells Stan Sitwell that she refuses to sell her share of the company, even though he hasnât made an actual offer. Sitwell expresses surprise that Lucille gave Lindsay less of the company than she gave her actual children. Lindsay is just as surprised to find out that she is adopted. Sitwell apologizes, assuming Lindsay already knew, but she is overjoyed to hear that she isnât related to the Bluths. However, she then discovers that she is three years older than she thought and is, in fact, 40. She doesn't take this news nearly as well.
Maeby, meanwhile, heads to Tantamount Studios, where word is out she is about to be replaced. She finds out that she is not going to be fired, and the studio has received ten offers on Maebyâs life story. The only catch is that she needs to get her family to sign their rights away.
Michael is having trouble sleeping after having compromised his morals and is surprised to find Lindsay sharing his bed. Lindsay happily tells him the news of her adoption and propositions him, claiming that if she does not get divorced and remarried in a month, she is going to sell her shares. She asks Michael to marry her but even he cannot sell out that much.
The next morning, Michael awakes to find Tobias in his bed. He tells Michael that he also wants to sell his shares and move on. Michael tells Tobias that if he can find another venue for the upcoming party, one that is not a boat, perhaps he can put Tobias on the company payroll as Events Coordinator.
George Michael visits Annâs to win her back. Her Uncle Paul answers the door and tells him that Ann has moved in with her new boyfriend. George Michael decides to seek out his own creepy uncle. At the same time, Michael confronts Lucille about Lindsay's adoption, which she openly admits to.
Michael says this is a problem, because it makes it harder for him to keep the family from selling their shares. Lucille suggests a payoff called an accrued cash dividend. The family will not get their money until they sign an agreement promising not to sell their shares for ten years. This maneuver is illegal.
Tobias catches up with Michael and tells him he has booked the Queen Mary, thinking this was a chain of nightclubs and not a luxury ocean liner permanently docked south of Los Angeles. He has also booked Gobâs old stripper troupe, the Hot Cops. Buster begins to dread the party.
George Michael catches up with Gob and finds out that Gob has been dating his ex-girlfriend Ann. Gob tells George Michael that Ann needs a man, and George Michael decides to become one by punching out Gob.
Maeby is trying to get the family to sign away their TV rights to her story. Lucille is trying to get signatures from the family too that would prevent them from selling their stock. And Gob, after hearing Lindsay say she is adopted, and upset that Michael sent George Michael to the docks, goes into a sort of knee-jerk revenge mode and tries to proposition Lindsay. She violently refuses.
Lucille asks Maeby to collect signatures for her, offering each family member $100,000. This solves Maebyâs TV rights problem as she can trick them into signing away their TV rights. Michael addresses the gathered crowd. While lauding each member of the family, Michael realizes that all of his efforts to keep them together have paid off and he begins to cry. The tears shown at the beginning of the episode are not tears of sorrow, but in fact tears of joy.
After the speech, Gob tells Michael of his run in with George-Michael and how he offered to let the boy have the yacht if he didnât hit him again. Upset that his son is fleeing, Michael leaves the party. Lucille tries to stop him by reminding him that fleeing will not look good to the investors. Michael chooses to ignore her and for once runs off to look after his son.
Stan Sitwell approaches Lucille. After a quick negotiation, Lucille agrees to sell Stan the company for 12% above the market value. Using one of the telescopes on the ship, Michael spots the C-Word in the harbor. Rushing to a rubber dinghy, Michael chases after his son.
Gob notices something too: SEC police boats approaching the party. Lucille wonders who tipped off the feds to the companyâs latest misdealings. Thatâs when the informant steps forward. Annyong, Lucilleâs adopted son, reveals that he dobbed them in as revenge for his grandfather, the man Lucille stole the banana stand idea from. Lucille doesnât want to go peacefully though.
George Michael explains that with Ann dating and Maeby being his cousin, he cannott stay in Newport. Michael informs him that Maeby is not actually his cousin. He then argues that he still shouldn't be with Maeby because heâs only 15 (although this is a mistake, see below) and, even though she isnât a blood relative, she's still family.
Suddenly, the yacht is rocked by a huge wave (after the phrase "don't rock the boat" has been said) as Lucille tries to power the Queen Mary off the dock and into the open sea. The boatâs rocking sends Buster overboard and into the ocean, his second greatest fear. He is soon confronted by his greatest fear, a seal with a yellow ribbon tied around its neck; the very same seal that Gob had used in his magic act until it developed a taste for flesh and caused him to dump it in the ocean. It is the very same seal that bit off Busterâs hand.
And the Queen Mary and C-Word both make a break for it. George Michael offers to go back and stick with the family, but Michael finally realizes that his son is the most important thing in his life. He decides to let the family handle their own problems while he spends time with his son. Michael pushes the throttle forward and he and his son motor off into the sunset, with the narrator saying "It WAS Arrested Development".