It is Christmas Eve, and time for Lauren to say goodbye to Horace & Tina. But everything goes terribly wrong when Horace is trapped because Max & TJ are trying to catch him. They're almost successful when Lauren can't take it anymore and tells Max everything about the Nelfs that have been hiding in her room. This makes Max trick TJ into running away, and letting Horace & Tina go with Santa Claus back to the North Pole. But later that night, Horace & Tina return in the house and say they'll be staying for another year. And amazingly, Max can see them!