The Palace of Pleasure: Don Sebastian, Portuguese Premier, sets a price on the head of royalist Ricardo Madons. Madons is in love with actress Lola Montez, whom Sebastian also adores. Madons abducts Lola and compels her to wed him, but then does not hold her to the compact. Lola, who is really in love with him, repents having sent for assistance when she was taken. When Sebastian's soldiers arrive, Lola is nearly slain when she stops a bullet meant for Madons. She escapes with Madons. The couple find happiness across the border.