- Brooke and Nick bond upstairs with Baby Jack, while Ridge seethes downstairs.
- Ridge's insecurities over Brooke and Nick's past show through as Katie enters Casa Marone and announces to Ridge she's moving in. Ridge cautions her, reminding Katie that Nick has a wandering eye (he did just cheat on Bridget with Katie, right?)
- Katie doesn't want to hear it and lambastes Ridge for not being positive. She tells him Nick loves her and that they're about to start a family together. She asks Ridge not to bad-mouth the father of her baby.
- Ridge tells Katie about the Brooke/Nick shared custody agreement of Baby Jack, and warns her that this will solidify the bond Brooke and Nick have. Again, Katie remains positive, saying this is the best thing for Jack and she wholly supports it. She refuses to worry that this "bond" might spell a reunion for Brooke and Nick.
- Ridge explains how a sharing a child is like no other bond and implores Katie to keep her eyes open; he'll do the same. Katie reluctantly agrees, but believes they have nothing to worry about. After all, Brooke is constantly saying how Ridge is her soul mate. They are together once again. How could Ridge possibly doubt their love?
- Meanwhile, upstairs, Brooke and Nick ooh and ahh over Jack, and Brooke makes little comments like "our son" along with googly-eyes to Nick. Nick, in turn, tells Brooke this is how things are meant to be. Hmmmm...maybe Ridge's paranoia is on the right track after all!
- Elsewhere, Stephanie summons Owen to meet her. Owen never implicates Donna in any wrong-doings. Instead, he tells Steph the truth - that as much as he wanted to sleep with Donna, she never crossed that line. Steph doesn't believe him, but Owen persists. He tells Steph that Donna always remained faithful to Eric. He tells her that Donna is the best wife Eric could ever have, which insults Steph to no end.
- Livid, Stephanie tells Owen that regardless of what went down, Donna's marriage to Eric is over. She then green-lights him to make his move on Donna, since she will soon be a free woman.
- Donna sees the two of them meeting and the second Stephanie exits, D makes a beeline for Owen. She demands to know what they were talking about and thanks Owen when he says he told the absolute truth. He then professes his love for her.