Rick attempted to convince Taylor to change her mind about ending their relationship and tried to slip the engagement ring on her finger. Taylor stopped Rick and pleaded with him to please let her go and never look back. It killed Taylor to risk losing him but she could not betray Phoebe. Donna was worried that Eric would be upset when she confessed to him about Marcus. Eric warned Ridge that he was jeopardizing their relationship by pushing too much. Confident that Donna would't let him down, Eric reiterated his deal about stepping down if Donna brought about another scandal. An emotional Phoebe ran into Ridge's arms after learning about Rick and Taylor's relationship. Phoebe informed Ridge and Brooke about Taylor breaking up with Rick.
At Forrester Creations, Eric told Donna about the promise he made to his children. Eric explained that he promised his children that if Donna caused a scandal for Forrester Creations, he agreed to step down as the CEO and owner. After what Eric told her, Donna did not tell him about her son, Marcus. Katie came to Forrester Creations. While alone, she encouraged Donna to tell Eric about Marcus.
While Donna was in Eric's office, Pam took a phone message from Marcus for Donna. She saw on the caller ID that Marcus was calling from the Insomnia Café. Pam was suspicious of why Marcus called Donna. Pam denied to Donna that she had taken any phone messages for her. Later, Pam went to the Insomnia Café and figured out who called Donna. Pam confronted Marcus. Pam told him that she saw him coming from Eric's house the other day. Marcus did not understand what Pam told him.
Rick and Phoebe coincidentally met up at the Insomnia Café. When Rick asked Phoebe how she was dealing with his and Taylor's relationship, Phoebe gave him an answer that he did not expect. Phoebe explained to Rick that she was devastated to learn that he was in love with her mother. Phoebe however explained that she had the choice to be a victim or to accept the situation. Phoebe commented that she understood that Rick loved Taylor, and that she accepted the situation.
Meanwhile, Taylor went to Ridge's office to inform him that Phoebe knew of her relationship with Rick. With Brooke present in Ridge's office, Ridge berated Taylor for her relationship with Rick. Taylor informed them that she had ended the relationship in an effort to show Phoebe that Phoebe was more important to her than Rick. At that point, Rick walked into the office. Rick defended his feelings for Taylor, and their relationship. Shortly after, Phoebe walked into the office. Taylor again reassured Phoebe that her relationship with Rick was over. Phoebe explained to Taylor that she knew her mother was giving up a man that she loved for her.
Phoebe had a revelation for Ridge, Brooke, Taylor, and Rick. Phoebe explained that she understood that Rick and Taylor loved one another. Phoebe explained that she knew what it is like to have people try to stop a relationship for whatever reason. Phoebe told Taylor that she knew that she was important to her mother. Phoebe said that she did not want to keep Taylor from Rick. She did not want her to have the pain from ending a relationship with a man that she really loved. Phoebe announced that she did not want to be the one responsible for the end of their relationship. When Phoebe left, Rick again proposed to Taylor. Brooke begged Taylor not to marry Rick. Brooke attempted to make Taylor feel guilty by telling her that she was hurting both Rick and Phoebe.
Pam met up with Marcus. She said she knew he had called Forrester Creations looking for Donna. Marcus asked how she knew, and Pam said she had caller ID. She said the caller ID led her to the café and to him. She accused Marcus of sleeping with Donna. Marcus denied Pam's accusations. Pam asked what his business with Donna was if they weren't sleeping together. Marcus told her that whatever was going on with him and Donna was none of Pam's business.
Brooke, Taylor, Ridge, and Rick had it out over Rick and Taylor's engagement. Brooke told Taylor that the ink was barely dry on her divorce. Brooke wanted to know why Taylor was rushing into another marriage so soon. Brooke expressed concern for Taylor's daughter, Phoebe. Brooke asked if Taylor was rubbing Phoebe's face in the relationship. Ridge said he was concerned about his daughter as well. Rick said Phoebe's feelings were the only ones that mattered. Brooke said Rick and Taylor's relationship had evolved out of Taylor's drinking and Rick's need to rescue Taylor. Taylor told Brooke to shut up and they exchanged some harsh words. Brooke encouraged Rick to take his time and not rush into things.
Taylor pulled Rick aside and in front of Brooke and Ridge, and accepted Rick's proposal. Taylor said she only wanted to make sure her other children, Steffy and Thomas, were okay with their relationship. Rick said statements like that made him realize what a good mother Taylor was. Rick turned around and looked at Brooke. He said he knew Brooke loved him but he wanted her to accept his engagement. He said if Brooke didn't accept his relationship with Taylor, he could see himself turning his back on Brooke. Taylor grabbed Rick's hand and they left to head home.
Brooke was angry when Rick and Taylor left. She said she believed Taylor was only using Rick. She said Taylor blamed Brooke for everything that had gone wrong in her life. Brooke felt Taylor did not love Rick. Ridge started to defend Taylor because he'd been married to her. Brooke said Taylor had changed since Ridge was married to her. Ridge felt the drinking had made Taylor become a different person. He said he knew what it was like to love a woman his mother detested. He encouraged Brooke to back off so she wouldn't push Rick away. Brooke said that while she loved Ridge, she could not walk away from her son.
Rick and Taylor arrived back at Taylor's house. They went upstairs to Taylor's bedroom. Taylor invited Rick to spend the night. They began to kiss passionately and ended up making love.
After their lovemaking, Rick said how happy he was. He said he knew that he would be able to hold Taylor and be with her for the rest of his life. Taylor said she knew that no matter what, Rick was in love with her and she wouldn't lose him. They kissed and began to make love again.
At Nick's house, Nick and Bridget wanted to celebrate Katie's birthday, but she was opposed to any party. Nick tried to persuade Donna that a celebration would be a good idea, but Katie said she didn't feel well and felt out of place at Nick's. When Nick and Bridget went upstairs, Stephanie arrived with a birthday gift for Katie. Stephanie wondered why Katie moved in with Nick and Bridget, and Katie answered that they insisted. Stephanie remembered that the last time Nick and Bridget were involved, it was a disaster, but Katie said clearly that wouldn't happen again. Katie told Stephanie that she encouraged Nick and Bridget to get together, and Stephanie pointedly asked Katie if she would rather be with Nick. Katie said she wouldn't cause any pain for Bridget.
At Forrester, Felicia, Thorne and Ridge discussed that they couldn't wait for Donna to cause a scandal so she would be dismissed from the company. Eric overheard his children, and reiterated that he and Donna were a package deal, and that he was sick of his children's opposition to Donna having a position in the company. They all whined that they were concerned about Eric. He pointed out that all the Forrester kids had been responsible for scandals. Felicia whined that they were hoping Eric would see that Donna was not the woman he thought she was. Eric stuck up for Donna. Later, Felicia visited her dad and told him that his family would always love him even if Donna left him.
At the Forrester mansion, Marcus visited Donna and told her that Pam was bugging him about his involvement with her. Donna thanked him and told him that she was glad he stayed in LA because she wanted to get to know him. He said he would be returning to his job, friends, and life in Texas. Donna asked him not to go, and she and Marcus discussed that she gave him up for adoption because she was young and scared. Marcus wondered if her family would have accepted him, and she said they would have. However, she added that her current family was making her life miserable. Donna explained that Eric's kids hated her, and that was why she hadn't told Eric about Marcus-because it could create a scandal. Marcus was insulted until Donna reminded him that Pam, whom Marcus called "the nosy receptionist," was just one of the people who hated her. Donna planned to tell Eric about Marcus that day. She admitted everything was complicated, and Marcus agreed and warned her again about Pam. As they talked, Eric walked in and asked what was going on.
Brooke and Ridge talked about Katie's birthday party. Ridge said he was going and inquired who else would be there. When Donna's name came up as one of the guests, Ridge made a comment. He said as long as Donna stayed free of scandal, things would be fine. Brooke asked if Ridge was trying to find some dirt on Donna. He said he wasn't and hoped there wasn't any. He said he wanted both Eric and Brooke to not be hurt again. They kissed and then prepared to leave for the party when Ridge's intercom buzzed. Ridge forgot he had a conference call with the Philippines scheduled, so Brooke kissed him and left for the party alone.
Ashley walked into Ridge's office as he finished his business call. Ashley asked him how things were with Brooke. Ridge said things were fine except for Donna. They talked about Ridge's reservations about Donna. Ridge said he worried about where Eric's loyalties lay, with Donna's family or his own.
Ridge asked Ashley why she stopped by. Ashley asked about Donna's plan for the sky lounge on the Forrester roof. Ridge thought it was a great idea but terrible timing. He felt that sales were down and the economy was bad. He said that Eric had already signed off on the plans. Ridge said he didn't understand what Eric saw in Donna. He said Donna seemed so plastic and unreal, and he hoped Eric would open his eyes soon.
Nick and Bridget prepared the house for Katie's birthday party. Bridget was worried that there might be too much excitement for Katie. She told Nick that Katie wasn't out of the woods yet.
Katie walked in and saw the decorations. She said she didn't want any party. Nick said it was a way to celebrate Katie's life being given back to her. Bridget told Katie the party was as much for the family as it was for Katie. Bridget handed Katie her gift. Katie sat down and opened it, revealing a keychain. Bridget said the artwork on it was the Chinese symbol for life. Nick handed Katie his gift. Katie laughed when she opened it. Nick gave her a child's basketball hoop and basketball to play indoors. He said it would be a while before she could play outdoors. He teased Katie and said that he wasn't throwing any games for her. Katie laughed, got up, and hugged him.
Thorne arrived at the party and gave Katie a sweater. She thanked Thorne. Thorne noticed Katie was perspiring and asked if she was okay. Katie shrugged it off and said it was just the excitement over her birthday.
Nick and Jackie stood off to the side talking. Jackie said she had hoped to see her grandson. He said Taylor had taken him to the zoo. Jackie started to protest but Nick reminded her Jack was safe with Taylor. Jackie switched the subject to Nick's living arrangement. Nick said Katie was recuperating with him and Bridget, nothing more. Jackie commented that Katie should be recuperating with one of her sisters. He told her that Bridget was a doctor and Katie was in good hands.
The doorbell rang and Bridget opened it to let Brooke in. Brooke greeted everyone then went to be with Katie. Before Bridget closed the door, Dr. Patrick arrived. Dr. Patrick explained that Katie's recent check-up revealed she was showing signs of rejecting the heart.
Katie opened Brooke's gift. While Katie chatted with Brooke about it, Nick walked over to greet Dr. Patrick. Bridget thanked the doctor for coming by and closed the door as he left. Nick asked Bridget what was wrong. Bridget took a deep breath and said they had a party to get back to. She left Nick standing by the door watching her with a puzzled look on his face.
Bridget sat beside Katie to give a speech before they cut the birthday cake. Katie looked worn out and continued to perspire. Bridget said how grateful and blessed they all were to have Katie in their lives. Bridget choked up as she gave an emotional speech about Katie. Bridget said she hoped Katie would live a very long life, and hugged her. Nick joined Bridget by Katie's side. Brooke lit the candles on the cake. Katie thanked everyone for making her birthday special. Nick teased Katie about blowing out her candles. Katie leaned over to blow them out, put her hand onto her chest, and collapsed on the floor.
Eric walked in the house and saw Donna and Marcus in the living room. Eric asked what was going on. When Eric looked at Marcus, he remembered Marcus had catered at Storm's memorial service. Donna lied and told Eric she was going to surprise him with a special dinner and hire the same catering company. She stopped herself from going further with her lie. She asked Marcus to give her some time alone with Eric. Marcus left the room. Donna told Eric how much she loved him and showered him with admiration. Eric asked if Donna was pregnant.
Donna told Eric she wasn't pregnant. Eric asked her why all the fanfare then. Donna explained to Eric how happy she was with him. She thanked him for all the things he'd brought into her life. Donna told Eric that things had happened when she was a teenager. She said she had done the best she could, given how young she was at the time. Eric was puzzled and asked what was going on. As Donna was about to reveal her secret, Eric's phone rang. He stepped aside to talk the call.
When Eric hung up he told Donna to not worry about secrets from her past. He told her she shouldn't mope around thinking about them. He kissed her and began to walk away. Donna thanked him and told him he was wonderful. She said she really had something to tell him. Marcus walked in the room and Eric tried to dismiss him. Donna asked for Marcus to stay because it involved him. Marcus wanted to tell Eric but Donna said it was her responsibility. Eric demanded to know what was going on. Donna blurted out that Marcus was her son.