Gloria plays hostess at the Abbott 4th of July pool party and BBQ. Ashley tells Jack that she's never seen Gloria so excited, and he says that John looks very happy, too. Michael, Lauren, and Kevin arrive, and Gloria can't contain her excitement that everyone can be together today. Later Ashley lets in Malcolm, who brings his camera, saying he will treat everyone with some candid shots. John, Gloria, Jack, Ashley, Jill, Brad, Kay, Esther, Paul, Michael, Lauren, Kevin, Sharon, Noah, and Abby are all gathered, socializing with each other. Jill is interested that Brad brought Sharon along. Noah asks Sharon if he can go swimming, saying that Cassie will be his guardian angel and look after him. Sharon is touched, but wants him to wait for her. Esther tells Gloria what a great party this is, and Gloria is so happy. Jack and Brad bump into each other and Jack asks what Brad has been up to lately. He says he's spending time with Abby and enjoying life at a slower pace. Jack says that Jill could use a right-hand man, and Brad wishes him luck finding one. Malcolm asks Sharon if she's heard anything more about the kids, and she said that Nick has confirmation they are in L.A. Later Jill and Malcolm talk about when he will come back to work at Jabot, and he says he is looking forward to it and will be there soon. Kevin thanks John for inviting him and Michael to the party, and says this is the happiest he's ever seen Gloria. John agrees, knowing that he is falling in love with her all over again. Brad asks Paul if he feels uneasy about Tom, and Paul agrees. Later Gloria gets everyone's attention and makes a toast of happiness to Michael and Lauren's upcoming wedding. J.T. and Brittany stand firmly against Mac returning to the loft. Mac feels like she's dying inside, and blown away by how hurtful J.T.'s being about the situation. Devon tells Dru that he went looking for this mother. Dru wonders if Devon has been feeling left out of their family lately, with all the attention they've been paying to Lily. Dru understands that Devon feels it's important to see his birth mother, but wants him to have her or Neil with him when he does it again. Nikki is sad that they're not doing a Newman family BBQ this year, so Victor surprises Nikki with a romantic dinner at the club. They dance and Victor surprises Nikki with a three week cruise around the Greek Isles in the fall. Nikki is so excited; this is exactly what she needs.
Lily and Daniel are sitting by their fire on the beach and discussing how Phyllis could have found them. Daniel tells Lily that he's worried about Phyllis having become involved. They seem to be alone there except for a runner who comes by and asks them to watch his radio while he runs after his dog. On the radio comes a song dedicated to a girl who was hurt by a drunk driver. Daniel listens intently to the song. He begins remembering the accident again and has visions of Cassie. He then falls asleep and has another dream. This dream begins revealing to him what really happened on the night of the accident. He wakes up just as the crash occurs.
Phyllis is looking for Nick and Neil. Nick then comes in wanting to know where she has been. With her back to them, Phyllis picks up a note and hides it under her blouse. She then leaves, telling Nick and Neil that she's tired of being treated like the enemy. Nick tells Neil they should have followed Phyllis because he knows she's up to something. Neil says they should probably go back and wait for Lily and Daniel at Brendan's house. Nick disagrees and tells Neil just that he's going "somewhere."
Meanwhile, Phyllis turns up at the beach restaurant asking the waiter about the kids she saw on the beach dressed up as fruits. He told her they were just a couple of kids looking to earn some money. She shows him a picture of both Lily and Daniel, and the man confirms that they were indeed the kids he hired to wear the fruit costumes. Phyllis tells her the boy is her son. She's sure they will have to return for their money, and he tells her he expects them back in sometime tomorrow. Phyllis gives him her phone number just in case. Nicholas then walks into the restaurant, ready to confront Phyllis.
Sharon has gone into the Abbott house after the pool party. Brad finds her crying and embraces her. She has been thinking about Cassie and is looking at a picture of her which she had in her purse. Just then Ashley walks in and gives Brad a strange look. Sharon thanks Ashley for having her at the picnic. Brad suggests that then plan another outing for the kids. Abby and Noah come running into the room, laughing with each other. Sharon invites Abby to come and play soccer at the ranch sometime. Ashley looks on at the interaction between Brad and Sharon. Sharon and Noah are ready to leave. Noah invites Brad to come to one of his games, along with Abby. Upon leaving, Sharon mentions that she's going to the club for the workout she missed today.
Ashley tells Brad not to let Sharon get too dependent on having Abby around. Brad feels that Ashley has something more on her mind. He says that he's concerned about Sharon with Nicholas being so far away.
Paul sits down with Nikki at the club. She tells him about her romantic evening with Victor. Their conversation then turns to Nick.
Vinny takes a seat at the bar and begins talking to Bobby about Brittany. He tells Bobby that he has a job for him.
Nikki remarks to Paul that Bobby doesn't look happy. She goes on to tell Paul that Brittany and Bobby have broken up because of J.T., that J.T. is the father of Brittany's baby, that Bobby has thrown Brittany out of their apartment, and she is living with J.T. Paul didn't know any of this; he is shocked. He's confused because the last time he talked with J.T., all was going well with him and Mac. Nikki also told Paul about the anonymous baby gifts Bobby and Brittany had been receiving. She asked if he knew Vinny, and Paul said he knows him to be a small-time hood. He tells Nikki not to be so sure that Bobby is out of the mob.....they play for keeps.
Paul then goes up to the bar and tells Bobby that he's sorry to hear about him and Brittany and also J.T.'s involvement. Bobby coldly tells Paul to mind his own business.
Nikki sees Sharon come into the club and asks her to sit down. Sharon tells her about the Abbott pool party and that Brad invited her. They talk about Nick being away and how obsessed he is about finding Daniel -- that it's not going to bring Cassie back. Sharon says she feels alone and that Noah needs his father. Nikki urges Sharon to just give Nick more time to heal.
Paul finds Bobby in the sauna and begins grilling him again about Brittany and J.T.
At the loft, J.T. tells Mac that he cannot deal with her now, that there's no future for them, and that he will have to live up to the the responsibility of his and Brittany's child. Mac tells him if he doesn't want to be with Brittany, he should be with her. J.T. does his best to discourage Mac. He tells her to walk away, but Mac insists she wants to move back and will stand by him and help. She says that he's a good person for caring about the baby. J.T. says he has become that way because of her. Mac, in turn, tells J.T. that he gave her reason to trust again. They share a kiss.
Despite sharing their tender moment, J.T. is still adamant that he doesn't want Mac to live there. She tells him she wishes she had never come back. J.T. tells her he doesn't need her in his life, that they should go their separate ways. Mac tearfully tells J.T. that he used her, but she vows to forget him....yet once again, a dejected Mac leaves the loft.
Daniel awakens, still on the beach, having had more flashbacks of Cassie....they are becoming more and move vivid. He has remembered himself being in the back seat, telling her to slow down.....he remembers she was driving.....he calls out to Lily. Daniel then reveals his startling realization to Lily: Cassie was driving!
Nikki went to see Brad at the Abbott house and thank him for being so supportive to Sharon and Noah. She wished Sharon could turn to her family. Brad said it was Nick she should be talking to, not him. Nikki agreed but said Nick was like a man possessed. Brad defended Nick, just as he had to Sharon, saying that Nick was doing what he had to do. He encouraged Nikki to try to talk her son into coming home if she spoke to him, though. Nikki asked what Brad was doing with his time, and Brad said he was happy to spend so much time with Abby. Nikki was skeptical, saying that he had too much corporate talent not to be working. When she found out that he and Ashley had been discussing the same thing, Nikki wondered if Brad was going back to Jabot. He assured her that he wasn't.
Sharon went by Nick's office, hoping to feel closer to her husband, and was a little put off to see Victoria behind the desk doing Nick's job. She'd heard rumors, but didn't know if they were true. Victoria said she was filling in for Nick because her father needed her. When Sharon saw how busy Victoria was, she had an idea of where she could get some help. Victoria didn't think Sharon was qualified to assist her, but Sharon said she wasn't talking about herself. She wasn't ready to come back to work yet. Instead, she thought Victoria should hire Brad. Victoria agreed that Brad would be an asset to Newman, but she didn't know if her father would approve or if Brad could work there under Victor's supervision considering their strained relationship because of Abby. She told Sharon she'd think about it though.
Paul sat in the steam room with Bobby and tried to get answers about his breakup with Brittany. To Paul, things didn't add up. He couldn't see J.T. breaking up with Mac, who he knew J.T. really cared about. He'd also spotted Bobby talking to Vinny at the bar. When he asked if Bobby was going back to his old life, Bobby basically told him to mind his own business. Paul told Bobby that he could trust him and that he had some experience with the kind of people Bobby was dealing with. After wrestling with his thoughts, Bobby told Paul the whole story about how the mob had threatened his and Brittany's baby. Paul assured him that he would help him. When Bobby asked why Paul was so willing to help, Paul said that he'd dealt with these people before. They'd killed a girl he was in love with. After Paul left, one of Vinny's goons came into the steam room and sat down next to Bobby.
J.T. walked into the athletic club to see Mackenzie in conversation with her grandmother. After watching her for a few minutes, he left and went back to the loft, where he found Kevin. Kevin had come there looking for Mac and had been shocked to see Brittany so pregnant. He'd deduced that this was the reason J.T. and Mac had broken up; Brit was pregnant with J.T.'s baby. Brittany pointed out that this might be a chance for Kevin to hook up with Mac. Kevin wasn't sure he wanted to be Mac's rebound boyfriend. While they were talking, J.T. arrived and was furious to find Kevin there. Kevin hurriedly left, and J.T. told Brittany that he couldn't stand thinking of Mac with someone like Kevin. He'd never forgive him for what he did to Colleen. Plus it had killed J.T. to turn Mac away. He warned Brittany that Bobby had better figure out how to handle all this quickly, or J.T. was going to handle it himself.
At the athletic club, Mac was telling her grandmother how stupid she felt for going back to see J.T. Katherine said that Mac wasn't stupid; she was brave and willing to risk being hurt for the sake of being honest about her feelings. Mac said she was never going to trust a man again, and Katherine began telling her a story about her first heartbreak. As they were talking, Kevin showed up and asked Mac if he could talk to her alone. Although Katherine initially tried to rebuff Kevin, Mac told her grandmother it was okay. Kevin had been supportive to her through all of this. After Katherine left, Kevin apologized for advising her to talk to J.T. He'd since learned what was going on between Brittany and J.T., so he should have never sent her there. Mac assured Kevin it was okay. None of this was his fault; she should have remembered that J.T. was the kind of guy who dumped girls after they fell for him.
Nick caught Phyllis giving her phone number to the manager of the diner at the beach and asked what was going on. Phyllis quickly explained that she'd given him her number in case he saw Lily and Daniel and that she'd shown him pictures of the two teens. Nick told the manager that if they showed up there, it was Nick who should be called, not Phyllis. After Nick gave the man his number and walked out, Phyllis hurriedly told him to call her first, not Nick.
Malcolm called Neil at Brendan's to see if there'd been any news about Daniel and Lily. While they were talking, one of the L.A. police officers showed up. Neil got off the phone and asked if the kids had been found, but she said no. However, she did tell him that a warrant had been issued in Genoa City for Lily's arrest. While they were talking, Nick and Phyllis returned. When Neil and Nick both seemed to be blaming Daniel for everything, Phyllis hotly defended her son. She said that he wasn't a bad person, and it was just as likely Lily's idea to run away as it had been Daniel's. They weren't bad kids. The officer said she wanted to find them, too, and if they'd just cooperate, no one would get hurt. Phyllis said that Daniel wasn't a hardened criminal, and Nick muttered that he would be after a few years in jail.
At the beach, Daniel told Lily that his memory had returned. He wasn't sure if he was making it up or if it had really happened, but he could see himself lying in the back seat of his car while Cassie drove. He saw her hands on the steering wheel and remembered the car crashing. Shocked, Lily thought it over and realized that must have been what Cassie wanted to tell Daniel when she left the hospital and found him at the coffee house. Daniel said he had to go back to Genoa City and clear his name. Even if no one believed him, he had to stand up for himself. Lily suggested that the person they should call for help was her uncle.
Malcolm was still sitting in the athletic club when his phone rang with a collect call from Lily. At first he seemed not to believe Daniel's story, but then he said it would all make sense. The important thing was for the two of them to get back as soon as possible. He promised to call Christine and tell her what Daniel had remembered, and Lily promised that she and Daniel would go right to her father at Brendan's place. But after she hung up the phone, she and Daniel heard gunshots. They hurried from their pay phone to the front of the convenience store, saw the register drawer empty on the counter, and the store employee lying on the floor in a pool of blood.
Daniel and Lily freak out when they see the gas station clerk is dead. Daniel says they have to get to Brendan's now, and can call the police from there. Nick feels like Phyllis is hiding some information and demands that she reveal what she knows. Officer Heisler comes running in, saying there was a fatal robbery in a convenience store down the road and two teenagers fitting Lily and Daniel's description were spotted fleeing the scene. Neil loses it, and screams at the cop that Lily was not involved in any of this. Lily and Daniel arrive, unseen, and freeze when they hear Phyllis' voice. They listen to what is going on and realize they need to get out of there. Neil states that he still feels that Phyllis is hiding something. Nick grabs her purse and opens it, asking her what all the money is for. Phyllis finally admits that she saw Daniel and Lily at the beach, and that she was trying to help only Daniel.
Sharon confides in Brad that everywhere she looks something seems to remind her of the tragedy. Brad tells her to give him Noah's baseball schedule, and she again thanks him for being such a good friend. Across the room Malcolm and Christine have filled in Paul about the new information Lily and Daniel told them, but Paul feels like it's just a story that two scared kids have come up with. Regardless, Christine feels like this is finally a defense she can try to build something on. Paul and Christine leave to go build their defense.
Victoria asks Victor if she can bring someone in to help her run the company, Brad Carlton. Victor says that if Victoria can convince him that Brad is worth it, he can have a job. Ashley and Tom return from a White Sox game, and they talk about what a fun time they had. She feels that Tom is gaining a bigger interest in her when she wants to keep this relationship strictly platonic. Tom is hurt, but brushes it off to her like it's not a big deal. He turns to leave, anger flooding his face and emotions.
Michael asks Gloria if she hired a lawyer yet and she said she did, but the process of declaring Tom legally dead will take about six weeks. Michael says that she can't tell anyone that he convinced her to do this and she said that she only told Lauren. Michael is furious, and Gloria can't understand why since she is his fiancée. Lauren understands that if anyone found out what Michael did, he could lose his law license. She suggests running off to Vegas to be married now, but he says that he likes the idea of a real wedding. He says he also can't wait to meet her son.
Nikki spotted Katherine, Esther, and Mac sitting at a table in the athletic club restaurant when she walked in. She stopped to speak to them, and Katherine said they were trying to cheer up Mac, which wasn't easy. Katherine pointed across the room, where J.T. and Brittany were also having breakfast. Nikki told Mac not to give J.T. that much power over her. She was too pretty and had too much going for her to waste her time on him.
Nikki then moved on to the table where Sharon was sitting alone. Sharon wondered if Nikki was following her, but Nikki said she was glad Sharon was getting out of the house. Sharon admitted that she didn't want to be there alone, so she'd come to the restaurant to write in her journal. Nikki was intrigued, not having realized that Sharon kept a journal. Sharon said she'd just started it as a way to cope with her feelings about Cassie. Nikki had another suggestion that she thought might be helpful; Sharon could plan this year's gala. Sharon was aghast that Nikki wanted her to bury herself in a social event when she was still grieving. She was also defensive when Nikki mentioned Brad's name. Sharon abruptly left the restaurant, telling Nikki that she'd find her own ways to deal with her grief.
J.T. was uncomfortable about making a show of being at the restaurant with Brittany after he spotted Mac watching them. He wanted to leave, but when Brit saw Vinny walk in, she told him to sit down. J.T. saw Vinny and said he didn't seem very threatening. Brittany reminded him that Vinny was working with other men, and this was their chance to show him that they were a couple. J.T. sat back down, taking Brittany's hand. While Vinny watched, Mac crossed the room and confronted the couple. She warned J.T. that he was making a mistake by getting involved with Brittany. She'd hurt Billy, Raul, and now Bobby. No doubt she would hurt J.T. one day, too. Mac then left with her grandmother and Esther, and later, J.T. and Brittany left.
Nikki watched Vinny as he stared at J.T. and Brittany, then she confronted him at the bar. She wondered why he was so interested in the couple and asked who he was and if he was a member of the club. Vinny gave her his name then told her that he was out of there. Nikki watched speculatively as Vinny left the athletic club.
Bobby was annoyed when J.T. showed up at his apartment, and J.T. insisted that he hadn't been followed. He wanted to know what Bobby's plan was, because he was getting tired of playing the role of Brittany's baby's father. Bobby said the first part of the plan was convincing everyone that he and Brittany had broken up. If that didn't succeed, there might not be a second part, because Vinny would have Bobby killed. J.T. warned him to resolve this situation quickly, or he'd do it himself. After J.T. left, Vinny came to Bobby's to tell him that he'd seen J.T. and Brit together at the athletic club. When Bobby asked why Vinny was telling him that, Vinny told him that he knew what Bobby's first job was going to be.
As ordered, Brad showed up in Victoria's office at Newman Enterprises first thing in the morning. When Victoria offered him a job, Brad turned her down. Before he could leave, Victoria assured him that she needed his talent and that her father, although he had reservations, supported her decision. She also said that if Nick came back, he would have to work with her regarding the decisions she'd made during his absence. If Brad was doing a good job, Nick would have no reason to get rid of him. Brad finally accepted her offer, and Victoria told him that he had someone he could thank. Sharon had been a strong believer in thinking Brad would be right for the job. Brad was surprised that Sharon had any influence over Victoria, and Victoria assured him that whatever Sharon's opinion, Victoria would have thought it was a good idea.
Sharon heard Victoria's comment as she walked into the office and acidly thanked Victoria for her faith in Sharon's judgment. When Victoria left for a meeting, Brad asked Sharon how she was doing and if she'd heard from Nick. Sharon said she was doing lousy, and there was no news from California. Even when that situation was resolved, however, she didn't think it was going to give Nick the peace he wanted. Brad said maybe not, but he still understood why Nick was looking for Daniel. And when he came home, he'd find Sharon and Noah there, and they could all help each other deal with their loss. Sharon thanked Brad for being a good friend and hugged him, which Victoria witnessed from outside the office.
Lily and Daniel woke up on the beach, depressed because of the grim reality that faced them. Now Lily as well as Daniel was considered a fugitive and a suspect in the shooting of the clerk at the convenience store. Daniel insisted that it was time for Lily to call the police and turn herself in, while Daniel went on without her. Lily couldn't bear for them to separate and begged Daniel for a little time on the beach together so she'd have some memories to hold on to. As they were walking, she borrowed a surfer's cell phone and called her Uncle Malcolm to see if they'd found any evidence proving that Cassie had been driving the car. Malcolm told her they were working on it, but it might take some time. He begged Lily to come home and not to hang up on him, but she cut the call short.
Malcolm was in Paul's office with Paul and Detective Weber, who was curious about who Malcolm's call was from. Malcolm and Paul continued to plead with him to let Paul investigate Daniel's car. Weber reminded them that it had already been gone over for evidence, was totaled, and was impounded. He was annoyed that they were going to try to find some evidence that would clear Daniel instead of seeing to it that Daniel paid for his crime. Weber finally agreed that Paul could go over the car with one of Genoa City's CSI people, but only if Daniel turned himself in first. After Weber left, Malcolm told Paul that he might need to leave town for a while. Paul pointed out that if Lily returned, she was going to need her uncle's support. Malcolm told Paul that he had no idea how complicated the situation was.
Neil hung up from a call from Malcolm and seemed reluctant to divulge their conversation to Phyllis and Nick. But Phyllis guessed that Malcolm had heard from Lily and demanded to know what was going on. Neil said that Nick wasn't going to like what he heard. Malcolm had not only heard from Lily, but Daniel's memory of the accident was coming back. He was sure that it had been Cassie, not him, driving the car. Nick was furious, accusing Daniel of trying to get out of paying for his crime by blaming Cassie. He tore out of Brendan's house to go to the beach and look for Daniel himself. Phyllis and Neil followed him, persuading him to go into the beach cafe to eat breakfast.
After Daniel persuaded Lily to go to the beach cafe without him, he watched her walk across the beach. Neil had come outside the cafe and spotted his daughter, running to her and hugging her. He told her never to run away again and warned her that she'd caused all kinds of trouble for herself and others. But he was just glad to have her safe in his arms. When he couldn't reach Drucilla, he called Malcolm to tell him that Lily was safe, but as he was trying to call the police over Lily's protests, Nick and Phyllis came outside and saw Lily. Phyllis wanted to know where Daniel was, and Lily tried to cover for him, but Nick spotted Daniel watching them from a distance. He asked Lily if Daniel had a gun. When Lily said no, Phyllis screamed for Daniel to run. Daniel took off down the beach with Nick in hot pursuit and Phyllis running after Nick. When Nick caught Daniel and threw him on the ground in a rage, Phyllis came between them, warning Nick not to hurt her son.