At the Athletic Club, Daniel (wearing a Santa hat) went over to talk to Phyllis. When Phyllis asked about the hat, Daniel told Phyllis that a lot of families were coming by tonight with their kids and that he was helping to run the playroom as a favor to Gina. Daniel asked where Jack was since he worshipped the ground she walked on. When Phyllis asked Daniel if he liked Jack, Daniel told her that he really liked the way Jack made Phyllis happy. Daniel and Phyllis told each other how much they loved each other, and Daniel urged her to give Jack a call. Daniel left to go help in the playroom.
As John and Gloria continued their remarriage, Kevin was talking to Michael on his cellphone. Ashley and Jack wondered what could be so important that Kevin needed to take the call right now. In front of the Abbott house, Michael (on the phone from the police station) told Kevin about the explosion and the yacht being blown up. Michael told Kevin that there was no sign of Lauren. When Kevin expressed the possibility of the worst, Michael expressed confidence that they would find her. Michael told Kevin that he was sure that Tom was behind the explosion. Michael told Kevin to get in touch with Scott and tell him what happened, but to make sure that Scott knew there was still hope. Michael told Kevin that it was okay for him to tell Ashley and Paul what was going on, but not to tell Gloria. Michael warned Kevin and Scott to be careful. When Kevin questioned Michael as to whether he really believed Tom was capable of something like this, Michael said that anything was possible.
Kevin re-entered the house and the nuptials were in progress. In attendance were Gloria, John, Jack, Ashley, the Reverend Bock and Kevin. John and Gloria exchanged personally written vows where they told each other how they had taught each other about unconditional love. Reverend Bock pronounced them husband and wife. They kissed and John and Gloria left for their romantic night at the spa, with the family applauding and wishing them well. Jack received the phone call from Phyllis, who invited him to join her for dinner at the Athletic Club. Jack left to meet her but as he was leaving ran into Paul, who told Jack that he had learned nothing new in Toronto. Jack left and Kevin told Paul and Ashley that something terrible had happened.
At the police headquarters, Michael told the officer that Tom Fisher was the person who had blown up the yacht. Michael told him to call Paul Williams who would verify everything about Tom -- how Tom had threatened his family and threatened Lauren. The officer told an agitated Michael that their resources were limited and that they had to rule out terrorism. Michael assured the officer that this wasn't terrorism, but that if it got more manpower down there to search for Lauren then they should pursue it, even though he was sure that Tom Fisher did it. The officer told Michael they had tried to verify his story but they couldn't get in touch with Paul. Michael thought the situation was crazy -- that while they were talking about Tom, Tom, the responsible party, was getting away.
In Tom's room at the Genoa City Motor Arms, Paul picked the lock so that he, Ashley, and Kevin could gain entry. Paul asked Kevin if Michael was sure that Tom had blown up the yacht. Kevin told Paul that that was what Michael had said. Paul gave Ashley and Kevin gloves to search Tom's room as Paul went to "Jennifer's" room to search it. Ashley noticed that Tom's things were still there so he must have been planning on returning. Paul returned and told them that it seemed that "Jennifer" had moved out. Kevin found an airline confirmation showing that Tom had booked a one-way flight to Miami last night, making them all think that Tom was not planning on returning. Kevin called Michael to tell him about the airline confirmation. Kevin's cell phone rang and it was Scott -- they had a bad connection but Kevin managed to tell Scott not to leave for Toronto -- that they had to go to Florida and that he would explain at the airport. Before Kevin left, Ashley told him just to tell Scott that Lauren was missing for now and to express their best wishes to Scott. When Kevin left, Ashley asked Paul why he was collecting prints, since the police already had Tom's prints. Paul said that you never knew when you might need them. Ashley thanked Paul for helping out with the situation that so closely touched her family.
Michael told the officer that Kevin had proof that Tom had flown to Miami with enough time to blow the yacht up. The officer again expressed his doubt that Tom was behind the explosion, but assured Michael that if Tom were the guilty party, he would be apprehended. Another officer handed him a purse that was found at the search site. Michael identified it as Lauren's, and he vowed that if Tom had killed Lauren that he would pay.
In an unidentified location, an unconscious Sheila had her head on a table. She slowly regained consciousness and looked around dazed.
At Nick and Sharon's, Sharon told Nick that nothing happened between she and Brad on their business trip. Sharon blamed herself and told an angry Nick that it wasn't Brad's fault that he came on to her -- that it was her fault. She told him that she had a moment of weakness with Brad in St. Louis but that nothing had come of it. She told Nick she thought this should be a wake-up call that there were problems between them. Sharon told Nick that it had been so long since she felt that he was interested in her. Nick had a quick flashback of having sex with Phyllis. Nick started to break down and told Sharon how sorry he was. Sharon told him it was okay, and they hugged. As Sharon began to take Nick's shirt off, he winced and Sharon thought there was something wrong with her. Nick assured her it was him -- not her. Just then Noah came in and asked if they were going to the Christmas event at the Athletic Club, as he had a letter to drop off for Santa. Sharon and Nick agreed to go and Noah went to change. When he left Sharon asked Nick if they could, during the Christmas season, put aside their differences for Noah's sake. Nick smiled and agreed.
At the Athletic Club Jack joined Phyllis. Phyllis thanked him for bringing her breakfast and apologized for not being more appreciative -- she also apologized for what happened at Lauren's wedding. Jack suspected that this sweetness had to do with the meeting that Nikki and Phyllis had with him the next day. Phyllis told Jack that that was his devious mind working and that she was sweet to him because she loved him. Jack told Phyllis that he loved her as well.
Sharon, Nick, and Noah came into the Athletic Club. As they walked into the dining room to find a table Nick and Phyllis made eye contact. Noah asked them if he could give his letter to Santa now and Noah left. Sharon and Nick agreed that it was nice to be out with their family. When Nick suggested that maybe they should write a letter to Santa to solve their problems, Sharon said they didn't need Santa -- that they could do this on their own.
Noah ran into Daniel in the lobby and gave him his letter to Santa, telling him how important it was that Santa received it. When Daniel asked Noah what he was asking for, Noah told him it was something he wasn't sure that Santa could do. Noah asked Daniel if he believed in Santa and if he thought Santa could do magic. Daniel said he did and assured Noah that he would make sure that Santa got Noah's letter.
Sharon went to see what they had to eat, and Nick stared at Phyllis and had another flashback of their sexual encounter. Jack told Phyllis that he hoped the dinner invitation included a nightcap. Later, Phyllis ran into Nick at the buffet table and she told him that she was glad he was there with his family. When Phyllis rejoined Jack she told him that Daniel would be gone for a few hours since he was helping out in the playroom. Jack and Phyllis left together, with Phyllis making eye contact with Nick on their way out.
Katherine visited J.T. at the loft and wanted to know what J.T.'s intentions were regarding Mac. J.T. assured her that he loved Mac very much. J.T. wondered if their moving in together was a problem for Katherine, and told Katherine that marriage wasn't yet in the cards for him and Mac. Katherine told J.T. that she wasn't suggesting marriage but that J.T. and Mac needed to make a commitment to each other -- kind of like a contract. A contract, she said, would help avoid conflicts down the road. She said that right now J.T. and Mac were on the same page, but there could be bumps later on down the road. J.T. told Katherine that he understood what their relationship was, and what it wasn't. Katherine told J.T. that he hoped for both their sakes that J.T. wasn't misleading Mac.
At the Chancellor Mansion, Jill asked Mac why she wanted to talk to Katherine. Mac told her that she wondered how Katherine felt about the moving out, since they did it abruptly. Jill told Mac she would have to ask Katherine about that -- that Jill wasn't getting involved in the situation, but she did tell Mac that Katherine loved her very much and wanted what was best for her. Jill pointed out that as one matures into an adult, one makes mistakes and learns from them. When Mac asked Jill if she thought J.T. was a mistake, Jill told her she only wished the best for them. Mac thanked her and asked her if she was enjoying the peace and quiet. Jill confided to Mac that although she had complained, that she missed the energy of having all the people around -- also that it kept Katherine out of her hair. Mac smiled, told Jill that she should get going, and left.
Katherine returned home after Mac left. When Jill learned that Katherine went to the loft, she was afraid that she was there to harass J.T. and Mac. Katherine let Jill know that she had simply gone there to bring Mac her pillow, and assured Jill that she hadn't been there to snoop. Katherine and Jill reminisced about last Christmas and how fast the year had gone. When Jill told Katherine she was looking forward to just the two of them spending Christmas together, Katherine smiled and said it would be pleasant.
Mac returned to the loft and was surprised to see J.T. there, as he had a game. J.T. told her that he did but he came home because he didn't feel right about leaving her alone on their first together. They kissed, and J.T. told Mac about Katherine's visit. J.T. told Mac that Katherine was concerned that Mac might get hurt. J.T. mentioned Katherine's idea that they enter into some sort of contract, and told Mac that he would shop if she would cook. They discussed money and decided to split expenses in half. When Mac asked J.T. what Katherine said about them living together, J.T. told her that Katherine lectured him on being nice to her. J.T. wondered who had his back -- no one was telling Mac to be nice to him! Mac assured him that no one needed to -- that she would treat him like he had never been treated before. He told Mac that Katherine would "nail his butt to the door" if anything happened to Mac. J.T. wondered why Katherine was concerned now, but wasn't this way when he was sneaking in and out of her room at the Chancellor Mansion. Mac explained that this was different -- they weren't living with her anymore. J.T. decided to order Chinese food. Mac wasn't hungry for anything but an almond cookie. J.T. tells her: one almond cookie, coming right up.
Scott and Kevin find Michael at the Florida Coast Guard Station clutching Lauren's bag. No word yet on where Lauren is. Not wanting to give up hope about Lauren, Kevin tries to check the map of ocean currents to see where she might have been carried away. Later, the rescue team calls off the search, and Michael is devastated. Paul finds the airline confirmation of Tom's flight to Florida in the trashcan. Ashley pressures him to tell her what is bugging him about the case. Paul admits to Ashley that he is not completely convinced that Tom is guilty. Ashley then learns that Brenda and Jennifer may be the same person, and that Brenda/Jennifer/Sheila may be part of the case. At the abandoned farmhouse in Genoa City, Tom kidnaps Sheila and has her bound by ropes. He admits he let the bomb go off, so Sheila believes that Lauren is dead. Tom reveals to Sheila that he has Lauren in the pile of blankets in the room and she's alive. Sheila then finds out that Tom drugged them both to get them there before the boat blew up. Sheila says that if Michael was on the boat during the explosion, it was Tom's fault. Lauren disagrees and says that it was Sheila that put the bomb there. In a rage, she starts to strangle Sheila. Daniel, Devon and Sierra open and read letters from Santa and find one from Noah Newman that touches their hearts. Noah wants to ask Santa to help make him always remember Cassie. Sharon, Nick and Noah run into Devon at the coffeehouse. Daniel and Sierra want to tell Nick and Sharon about Noah's letter, but are too nervous. Nick, Noah and Sharon hang up Christmas ornaments and find one that was Cassie's favorite. Phyllis and Jack have a short discussion about whether everything is okay between them after they made love. Later on, Nikki and Phyllis pitch their idea of a Wellness Spa to Jack, but they are surprised when he says no.
At a meeting at the athletic club, Drucilla discussed Sharon's upcoming travel schedule with her. Dru realized that she'd struck a nerve when she mentioned Sharon's time in St. Louis with Brad. Sharon admitted that it might be better if she and Brad didn't travel alone together again. Drucilla told her to be careful; these kinds of episodes, even if nothing happened, could destroy a marriage. Sharon said that she'd told Nick what happened, which Dru thought was a bad idea.
Victoria and Brad ran into each other when they were working out. Brad wanted to give her Christmas present to her, but Victoria said she'd rather exchange gifts on Christmas Eve, when he was invited to the ranch with Abby. Brad said that Abby would be with Ashley, but if Victoria thought it was okay with her family, he'd come to the ranch. Victoria had to leave for a meeting with Drucilla, and missed Sharon's entrance into the workout room, where Sharon and Brad exchanged a meaningful glance.
In their meeting, Victoria promised Drucilla that she wouldn't always have to accompany Sharon out of town. Other people could travel with Sharon, including Brad. Drucilla tried to discourage that idea without betraying Sharon's confidence to her. Victoria interpreted Drucilla's warning as her attempt to share some of the limelight with Sharon.
Devon helped Neil compile a list of CDs that Lily would like, then Neil told him that Lily wasn't coming home for Christmas. Instead, Neil, Dru, and Devon were going to see her in New Hampshire. Although Devon didn't want to leave his mother behind, Yolanda insisted that she'd be fine. She wanted her son to go and have fun with his foster family. When Devon went to pack, Neil thanked her for being so agreeable about being away from Devon at Christmas. Yolanda said she'd miss him, but she wanted him to have a good time. Yolanda would be working at the boutique and looking for another full-time job. After Yolanda left to follow up on some job leads, Devon asked Neil to invite his mother with them to New Hampshire for the holidays.
In Florida, Scott lashed out at Michael, blaming him for the explosion that might have caused Lauren's death. If Tom was responsible, Michael should have better protected them from his stepfather. Scott walked out, and Kevin went to try to calm him down. Michael called Paul to tell him the kind of explosive that had been used on the boat. Later, Kevin called Mac, who'd been worried about his absence, and told her what had happened to Lauren. Kevin then tried to persuade Michael to go home. Michael was reluctant to go; he felt like he was abandoning Lauren. But Kevin insisted that Lauren would want Michael to be with people who loved and supported him. Michael agreed that maybe it was time for all of them to go back to Genoa City; he was probably just getting in the Coast Guard's way as they tried to find Lauren.
Paul was shocked to hear about the type of explosive that had been used to blow up the yacht. He told J.T. it wasn't easily obtainable, and he didn't know how Tom could have gotten it. This fed into Paul's theory that Tom wasn't the one who'd masterminded the plot against Lauren. J.T. wasn't convinced that anyone other than Tom, including Jennifer Mitchell, had been involved. Paul said that he had some theories that he wasn't ready to share yet, and warned J.T. to stay objective. Later, J.T. went to Crimson Lights, still following Paul's instructions not to tell anyone, even Mac, what had happened to Lauren. But after Mac heard from Kevin, she was hurt and angry that J.T. had kept such news from her. She didn't know if they could have a relationship if J.T. had to keep secrets from her.
In the farmhouse outside Genoa City, Sheila tried to persuade Tom to partner with her again to get ransom for Lauren. She promised that he could trust her; she'd never intended to hurt him, only Lauren. Tom didn't fall for Sheila's manipulations, and Lauren asked to speak to him alone. While Tom and Lauren were upstairs, Sheila managed to get herself untied. Lauren swore to Tom that he could trust her. She, or even Eric Forrester, would pay anything to see Sheila come to justice for the things she'd done. Tom didn't know if he should believe Lauren and said he needed time to think. When he heard Sheila make a noise downstairs, he ran out of the kitchen, and Lauren managed to escape from the farmhouse.
Tom recaptures Lauren. Later in the bomb shelter, Sheila tells Lauren about how she escaped the mental facility. She says she tricked a guard named Sugar to accompany her to South America, where she got plastic surgery to look just like Sheila. Tom leaves Lauren and Sheila to rot in the bomb shelter. Michael, Paul, and Det. Hawkins meet at the motel garage where Tom was keeping his motorcycle.
Scott arrives shortly thereafter, and Paul reveals that he thinks that Brenda and Jennifer are the same people. Scott tells Paul about the photograph that Brenda had when she worked at Memorial Hospital. Paul finds a trace of C-4 explosives in the garage, but thinks it is too convenient.
At the coffeehouse, Kevin and Mac reminisce about all the nice things that Lauren has done for them throughout the years. Nikki and Phyllis tell an intrigued Victor about the Jabot Spa idea.
At the G.C.A.C, Phyllis gives Nick a gift of a paperweight of the three monkeys (see no evil, hear no evil, speak no evil), which makes Nick laugh.
At the gym, Brad is shocked when Sharon reveals that she told Nick about what happened between them in St. Louis. She suggests not ever being alone with him, just to make sure that Nick isn't suspicious of anything. Nick is not happy when Victoria tells him that Brad will be with them on Christmas Eve.
Dru and Neil present Devon with a plane ticket for Yolanda to join them in New Hampshire for the holidays.
Lauren and Sheila pounded on the door to try to get Tom to release them, but he never responded. Sheila accused Lauren of destroying the lives of her husband, Scott, and their son, Scotty. Sheila said that she was the only one who'd loved them. Lauren told Sheila that what she felt was obsession, not love. Sheila had never loved anyone; she'd even tried to kill her own mother. The reason Lauren and her son had never been able to enjoy a happy family life with Scott, or live together after his death, was because of Sheila. As far as Lauren was concerned, the world would have been a better place if Sheila had never been born.
Victor and Nikki went by Michael's house to take him some food and express their condolences over the loss of Lauren. Nikki encouraged him to lean on his friends and to know that he was loved. Later, Kevin and Scott came in. Scott apologized for blaming Michael for his mother's death, and Michael told him again that they would always be family, if that's what Scott wanted. Scott was grateful and said that he did want that. Kevin brought out a bag of Christmas presents that Lauren had bought for all of them. Scott opened his and found a photograph of him with his mother in New York many years ago. Later, he stared from the window as Michael was overcome by grief and Kevin felt helpless to do anything for either of them.
At Crimson Lights, Daniel and all of Cassie's friends had a surprise for the Nick, Sharon, and Noah. They'd put a portrait of Cassie on the patio and named the area Cassie's corner. It would be a place where they could always feel close to Cassie. Noah felt like Santa had answered his letter, and Nick shook Daniel's hand and thanked him. Later, Sharon and Nick dropped Noah at the Newman house and went to their house to talk. Nick apologized for his distance from Sharon and said what had almost happened between her and Brad was a wake-up call for him. He gave her a ring he'd been saving for their tenth anniversary and promised to help her rebuild their relationship. Later, after they made love, Sharon and Nick looked up at Cassie's stocking hanging by the fireplace.
Victor and Nikki decided not to tell anyone the news about Lauren on Christmas Eve. Brad and Victoria had exchanged gifts before her parents got home, and they decided to go for a walk before dinner. When they were alone, Victor gave Nikki an early present--he was going to build a nationwide chain of spas for her to run. After Nick and Sharon dropped Noah off, Noah told his grandparents what Daniel had done at Crimson Lights in memory of Cassie. Nikki and Victor helped Noah put an angel on top of the Christmas tree.
Jack went by Phyllis's apartment to drop off her gift, and Phyllis gave him one in return. When he started to leave, Phyllis invited him to stay and spend the evening with Daniel and her. Jack was willing to put all business aside just to focus on her for the night. Daniel came in with enough take-out food for all of them. Later, while Phyllis and Jack looked out the window at the snow, Daniel opened his fortune cookie and read his fortune: You have a guardian angel.
Yolanda declined to go to New Hampshire with Devon and the Winters because of her job at the boutique. Devon finally accepted her decision once he was sure that she hadn't been forced to stay in Genoa City. He then told Neil and Drucilla how much they meant to him; they were the best foster family anyone could have. He also told his mother how proud he was of her and that he loved her.