Lily and Ted bond as she helps him decorate the Capwell Christmas tree. Katrina sees Mason drowning his sorrows in alcohol and goes over to talk to him. He shares all his sorrows with her. She then hands him a letter from Warren. C.C and Santana tell each other how much they missed one another. Craig tells Angela that the shooting was well executed. Mason gets Katrina to read the note. Warren wrote that it was worth it being sentenced to death just to see Mason destroy the only two people who actually care about him, Julia and Cassie. Mason grabs the note and crushes it up. Katrina tells Mason that she does not like the person he has turned into. She says that he has changed from a humorous and cynical man to a bitter and angry bulldog. She adds that Mason can no longer find his heart and the Champion of Truth is Warren, instead of him. Her remarks really make an impact and for the very first time, Mason begins to question his convictions. C.C tries to make amends with Katrina. C.C and Santana head out to Angela's house to take measurements for the remodeling. Craig tries to make love to Angela, but she makes up all sorts of excuses not to. She asks him to take her home. Ted and Lily have finished decorating the tree and talk about their family traditions and past Christmases. Angela and Craig return to find C.C and Santana there. C.C pulls Craig aside and tells him that he is fired because of his mishandling of Katrina and Dash. During their conversation, Craig stumbles upon the bullet in Angela's purse. When C.C is finished, Craig pulls Angela out and takes her to his apartment. At Craig's apartment, he shows her the drawer and tells her that someone he trusts has double-crossed him. C.C and Santana arrive home and rush upstairs. C.C opens his door and is in awe of what Santana has done to his room.
C.C is very pleased with the redecoration of his bedroom. He is helping Santana get undressed when Rosa and Kelly enter. C.C and Santana manage to disentangle themselves, but have already warranted disapproving stares from Rosa and Kelly. Craig goes through the drawer to see what is missing. They then play a cat and mouse game in trying to determine who is the culprit. Angela removes the bullet from her purse and places it in her brassiere. Craig continues their conversation earlier, asking her what she and Warren were doing at the time of the shooting. He hypotheses that they were not together and suggests that she has a motive herself. Angela counters that Mason has made many enemies. Kelly is very upset with C.C and Santana's relationship. When Ted defends them, she tells him that he cannot pass judgement because he was not home when the family began to fall apart. Rafael asks Rosa out on a date. Rosa comments that C.C's new bedroom is an exact replica of the one Santana designed when she was seeing Channing all those years ago. This angers Santana. Rosa tells Santana not to let herself fall for C.C if she is unsure of her own feelings. Santana explains to Kelly that her relationship with C.C is different and that she has never set out to replace Sophia and the love she and C.C shared. Craig tells Angela that he is not in C.C's good books anymore and promises to make C.C pay for treating him so badly. Craig asks to search Angela's purse. Finding nothing, he conducts a body search and finds the bullet. Caught, Angela confesses that she broke into the drawer to see if there was anything he could use against her if they got involved. Lily gathers more information on Craig and her connection tells her that she should be very careful around him. When Angela is gone, Gina comes in and spends time with Craig. Santana and C.C meet in his bedroom and they fold into a warm passionate embrace.
It is the morning after. C.C and Santana wake up in each other's arms. They talk about their inner child and how it must be set free once in a while. Angela is writing letters to Warren. She crumples them to make them look old and stick it behind his drawer. She disguises her voice and phones Marley, telling him that they have missed some evidence. News of David and Angela's divorce hits the papers. Cruz and Suzanne grow closer and he asks her not to shut the door on the idea of a deeper relationship. Julia, David and Jim try to plan their defense strategy. Julia pretends to be Warren and role-plays the testimony. She then pretends to be Angela, but feels uncomfortable when David throws questions about Angela and Warren's intimate relationship her way. C.C gives Kelly more responsibility at Capwell Enterprises. Suzanne is called as a character witness for Warren. Marley orders Cruz to search Warren's room for the evidence. Cruz finds the letters and begins to read them when Marley walks in and snatches them away. David and C.C's friendship grow stronger as the new C.C accepts his friend's decisions. Angela warns David not to call her to testify because she will prove to be more damaging to Warren's case. David wonders how she can be so vindictive. Mason questions Angela on the details of the night of the shooting, but Angela proves to be of no help. She tells him that she will not be used by him or by anyone else. Kelly begins to doubt Warren's guilt and expresses her feelings to Cruz. Suzanne is afraid of testifying, but Cruz manages to comfort her. Mason tells Julia that he is not as confident as he used to be, especially around her as she makes him nervous, because he still thinks that there is hope for them. Julia tables the discussion as the trial begins.
Suzanne is terrified of testifying. Cruz helps her to calm down. They talk about the possibility of having a future together. Suzanne says that he will never love her the way he loves Eden and that she will fall in love only once in her life. Cruz manages to expand her outlook and persuades her to take a chance on a relationship. C.C is worried about Santana's testimony. She assures him that she will be able to handle herself and Marley. He offers to take her to the courthouse, showing her a new side of C.C Capwell. Warren notices that Cassie is not wearing her ring and questions her on it. She snaps at him and evades his question. She expresses worry about the trial. C.C and Santana walk into the witness area and find Cruz and Suzanne hugging. Alone, Santana comments that she was once married to Cruz and says that she knows how difficult it is when someone does not love you back the same way. The trial resumes. Marley intimidates Suzanne on the stand. He tries to badger Santana by bringing up her past but she stands strong. Santana testifies that the Capwells are behind the witch-hunt against Warren. Cruz tells C.C that he needs to move on and is in no way trying to replace Eden with Suzanne. Warren mentions that he could have easily killed Mason on Alcatraz if he wanted to, but he didn't. Julia then comes up with an idea to put Mason on the stand and get him to testify to the event. Warren and Cassie object feverently. Marley tries to get a hold of Angela to question her about the letters. Mason tells Julia that putting him on the stand is a bad idea. C.C and Santana argue over the trial, but make up soon after. He tells her that Brandon will be coming home early. Julia is confident that Mason will tell the truth on the stand and decides to serve him the papers to testify.
Craig is at the Oasis looking for Gina. Lily lies and says that she is at a doctor's appointment. Craig tries to be friendly and talks to Lily about Vegas. She implies that he has picked up some nasty habits there himself. Craig asks her to try and be civil since he is getting closer to Gina. The trial resumes and Mason is sworn in. Warren asks to speak to Julia in private. David calls for a recess, which annoys the judge. Alone, Warren tells Julia about his past relationship with Cassie and that Mason has known all along. Faced with the turn of events, Julia decides against Mason testifying but realizes that it is too late. Cassie reassures Warren of her faith in his innocence. They worry that Mason will reveal their affair on the stand. Craig locates Gina at the Oasis and invites her back to his place. Gina finds out that Lily lied to Craig about her whereabouts and tells her to butt out of her personal life. Katrina tells Ted that her editor wants her to do a follow up article. He suggests that they take a trip to inspect an oil field while they discuss the article. David asks Mason about the events that took place on Alcatraz. Mason confirms that Warren did not kill him when he had the chance to. When Marley questions Mason as to why Warren despises him so much, Mason brings it back to the newspaper bombing and the Capwell Lockridge feud. Julia and Cassie are relieved that Mason did not expose the affair. Gina and Craig grow closer as they decorate his Christmas tree. Ted and Katrina are stranded at a cabin when their helicopter breaks down. Marley decides to call Angela to the stand to which he hopes would drive the final nail in Warren's coffin.
Angela is called to the stand but David manages to ask for a recess. Warren remains adamant that Angela should not testify. C.C stops by Craig's house and finds Gina there. C.C demands that Craig break off his relationship with Gina. Craig asks C.C for another chance to prove himself. Angela is on the stand. Marley asks her about the night of the shooting. At first, she says that she was with Warren. But when Marley probes further, she admits that they were not physically together. She adds that she found Warren with the gun in hand just moments after she heard the shot. Her testimony proves damaging to Warren. David tells Julia that he is willing to bring up Marylyn's death if it will help cast a reasonable doubt over Angela's testimony. Julia thinks that he is risking too much. Gina finds Brandon at the courthouse and snaps at C.C when she realizes that he brought Brandon down to surprise Santana. Craig threatens C.C with his mob connections if he does not reconsider taking Craig back. Angela looks at the bullet that killed Amado and recognizes it as the one she found in Craig's apartment. Putting everything together, she is now positive that Craig is the culprit. David gets Angela on the stand. He manages to break her down without bringing up Marylyn's death. He accuses her of having a motive to kill Mason as well as the opportunity with her being a master marksman. Angela is upset with David for the way he treated her on the stand. Mason credits Julia and David for creating a hint of doubt in his mind concerning Warren's guilt. He adds that he has turned bitter and cynical because his life was lacking Julia's love. Angela tries to avoid Craig and asks David to take her home. When David refuses, Craig steps in ready to offer his assistance.
Angela is certain that Craig is the killer. She tries to get away from him by making up all sorts of excuses, but he sticks to her like glue. He says that he needs to have a little talk with her. Angela manages to retreat to the witness where she scribbles "Craig has the bullets" on a piece of Kleenex. She slips the note into Cruz's pocket just before Craig drags her out the courthouse. Cruz says that Warren's case is looking good due to Angela's testimony. Trial resumes for closing arguments and he heads back in, unaware of the note in his pocket. Kelly visits Sophia to try to convince her to return home, but Sophia is adamant over her decision to stay away. Kelly tries to cheer her up by getting her a Christmas tree. Suzanne tries to ease Chip and Adrianna's feelings over Eden's absence by making ornaments for her. Cruz is deeply touched by her thoughtfulness. Kelly is upset with Cruz when he tells her that he will be spending Christmas with Suzanne and the kids, but is quick to add that his love for Eden will never end. At gunpoint, Craig confronts Angela about her suspicions over the bullet. She confesses all her suspicions to him. Gina interrupts them and distracts Craig, giving Angela an opportunity to escape. Craig finds her gun and tells her that he is going to kill her. Suzanne tells Cruz that she will understand if he wanted to be alone with the children during Christmas, but Cruz says that she is part of the family and that she has to be there. Mason shows up at Julia's dressed as Santa. They reminisce over past Christmases. He asks her for another chance to start over and rebuild their marriage. She toys with the idea, which gives Mason hope for the future. Craig forces Angela to write her own suicide note. He wipes off his fingerprints and points the gun to her head. Angela scoffs that he should rot in hell as Craig determines the fate of her life.
Warren calls everyone down to witness his last editorial before the verdict. He informs them that Angela's testimony was an act and that she was on their side all the time. Gina and Lily are driving home when she hears that the verdict will be out soon. She forces Lily to drive to Angela's house so that she can gloat. Craig has Angela at gunpoint. She pleads for her life and hears the radio announcement. She convinces Craig to hold off until after the verdict. Craig agrees to humor her. The jury has reconvened. They find Warren not guilty. Minx is moved to tears by the verdict. Cruz offers her a Kleenex and finds the note that Angela had written to him. Warren admits that they have suspicions about Craig. Cruz remembers that Angela is with him. Realizing the severity of he circumstances, Warren and Cruz are out the door to rescue Angela. Craig is about to blow Angela away when Gina comes in gloating over the verdict. Angela is glad to see Gina as she keeps Craig distracted. Cruz arrives under the pretense of arresting Angela. Gina leaves, but begins to go into labor. Craig calls Cruz's bluff about the arrest and pulls a gun, holding Angela hostage. He forces Cruz to relinquish his weapon. Warren sneaks in and knocks Craig off his feet and a struggle ensues. They manage to subdue Craig and take him into custody. While rushing to the hospital, Lily hits Lionel's dog. Gina forces them to go to a vet first. Ted and Katrina spend Christmas Eve in the cabin and later in the Capwell house. Cruz and Suzanne share a tender moment as they exchange gifts. Warren and Angela reunite in a night of passion. Gina, with the help of Lily, Brandon and Lionel, gives birth to Channing Creighton III in the vet's office, and they are all touched by the miracle of life.
The morning newspapers highlight the arrest of Craig Hunt for the shooting. Brandon tries to prevent Gina from seeing it. He tries to persuade his mother to call C.C, but Gina remains adamant about keeping the birth a secret. Santana thanks C.C for giving her the best Christmas she has had in years. Ted comes in and interrupts them. He tells his father that he found out that it was C.C who engineered the idea of stranding Ted and Katrina in the cabin on Christmas Eve. He blows up at C.C for doing such a manipulative and under handed tactic and says that C.C has no respect for the love that Katrina has for Dash. Mason and Cassie try to be civil towards each other. She is still torn over her feelings for Mason. Lionel visits Gina and accidentally spills the beans on Craig's arrest. Gina is horrified and says that it was bound to happen because she only attracts bad seeds. C.C invites Katrina and Dash to the house for a family dinner. Dash surprises Katrina with a call from her parents in Germany. Ted thinks of leaving but Kelly tries to convince him to stay. Lily tells C.C that Channing has been born. C.C goes to see Gina, but she refuses to let him near the baby. She says that she will have Lionel proclaimed the father because she does not want the baby to have anything to do with the Capwells. Cruz and Suzanne's relationship grow deeper. Cassie tells Lionel that the wedding has been called off. C.C tries to be civil towards Dash as a gesture of goodwill towards Katrina. Mason suggests to Cassie that they shelve their wedding plans for good due to their unresolved feelings for Julia and Warren.
Lily brings Ted to the vet's office but finds that Gina is not there. Lily is worried about her mother's erratic behavior lately. C.C receives the final divorce papers from Sophia's lawyer. Gina, with baby in tow, barges into Lionel's office claiming to be his new secretary. Minx is baffled as she watches Gina redecorate Lionel's office. C.C lays into Cruz over his relationship with Suzanne. He accuses Cruz of being unfaithful to Eden and says that Suzanne is not and never will be part of the family. Cruz gets mad at C.C's callous remarks of Suzanne. Kelly tries to defend Cruz. She points out that C.C is being hypocritical because he is in a relationship with Santana and the ink on his divorce is not even dry yet. C.C resents the intrusion into his life and lashes out at Kelly. Lily calls Dash and he tells her that Gina may be suffering from post partum depression. Lionel expresses his sympathy for Cassie's broken engagement. Minx informs C.C that Gina is at her home making a nuisance of herself. C.C calms down and apologizes to everyone. Cruz and Kelly spend the day together and find their friendship growing stronger. Kelly tries to reestablish her friendship with Cassie. Gina refuses to let C.C see the baby. She threatens him with a gun and forces him to retreat. Cassie tries to mend fences with Lionel and Minx and they welcome her back with open arms. Ted and Lily's bond grows stronger. C.C finally corners Gina in the vet's office. She lets him in but locks him in a room with a skunk as she sits back, pleased with his screams of horror.