Brooke expressed outrage at Katie for accepting Bill's offer to make her CEO. Katie realized the idea of her becoming CEO was upsetting to the family, but asked them to believe she had Forrester Creations' best interest at heart. Brooke pointed out that being a CEO was a big job and Katie would be tied to work "24/7." Katie was prepared for the challenge and promised to give the job her all. Brooke added that it took more than effort to be a successful CEO. Eric chimed in that it took experience, which was something Katie lacked.

Katie told the family that Bill Spencer had faith in her abilities and would never have agreed to appoint her CEO if he wasn't certain she could rise to the challenge. Katie fully believed she was up to the job .

The Forrester family lambasted Katie and accused Bill Spencer of using her to get his own way. Katie refused to believe their accusations. Eric felt betrayed by Katie and pointed out to Katie that he had given her an important job at Forrester and had trusted her. Eric expressed his disillusionment with Katie for taking Bill's side.

Katie said Bill Spencer had a good business plan to save the company. Katie continued that if Eric weren't so busy hating Bill and would actually consider his plan, Eric would agree. Brooke addressed Bill and warned him that Katie had no experience running a company. Donna added that Katie was so completely under Bill's spell that she believed she could do anything. Katie sarcastically thanked her sisters for their ringing endorsement.

As the attacks continued, Bill intervened. Bill said if the family wanted to call him names and question his business practices, they should feel free, but he refused to listen to them malign Katie any further. Brooke scoffed at Bill's concern and said that Bill was the one who was hurting Katie. Brooke added the Katie thought Bill had a heart, but she was wrong. Brooke believed the only thing that made Bill Spencer tick was controlling people.

Bill said that Katie was the only intermediary that he could appoint who was loyal both to him and the Forrester family. He added that they should feel fortunate that he appointed someone as CEO who was actually loyal to their family.

Ridge declared that he would continue to run the company with Brooke and his dad, and that nothing was going to change. Eric added that he would allow Katie to keep the P.R. job that he had given Katie only as a favor to her sisters, although he admitted she had done a good job.

Bill chuckled at their arrogance. Bill reminded Katie that Eric dismissed another strong woman, namely Stephanie. He added that after Eric took Stephanie for granted and fired her, the company had been "circling the drain ever since." Ridge reminded Bill that his shady deal with the bank hadn't gone through yet. Bill chuckled again and remarked how touching it was to see Ridge fight until the bitter end, but added it was futile.

Eric told Bill he had a lot of nerve appointing a CEO to a company he didn't even own yet. Brooke asked Donna and Katie to join her for a private "sisters" meeting. The ladies left and Bill, Eric, and Ridge continued to bicker. Eric said Bill was right about one thing, Katie Logan was smart, and she would eventually realize that Bill was a predator who was using her for his own gain.

Bill replied that he could either do a friendly takeover of Forrester, or a hostile one, and it was all up to Eric. Bill said Eric should thank him for his offer to pull Forrester out of the abyss. Ridge said he and his dad would never let an outsider take over their company. Bill added that was why he had chosen Katie as CEO, because she was not an outsider, but part of the family. Ridge accused Katie of being Bill's puppet. Bill defended Katie and said that no one could tell Katie what to do, because she had a mind of her own.

Eric's banker arrived and said the bank board had an emergency meeting and proposed a compromise. Ridge was relieved until he saw the fine print. The deal offered was that Forrester Creations would have to repay a hundred million dollar loan in one year, instead of the nine years left on the contract. Bill laughed and pointed out that it would be tough for a thriving company to accomplish, much less a company in trouble.

Eric said the only person who would take over Forrester was Ridge. Bill laughed and apologized for raining on Ridge's promotion; he reminded Eric that Eric didn't have 100 million dollars to pay off his loan. Bill added that Eric would have to sell his jet, his home, and his soul to pay off that debt. Bill happily added that he was not only Eric's best option, he was his only option.

Brooke and Donna warned Katie about Bill Spencer and his true motives. They said that Bill had planned a hostile takeover of Forrester Creations all along and had used Katie as a weapon. Brooke and Donna predicted that as soon as Bill had what he wanted, he would dump Katie.

Katie was hurt and appalled by their words. Katie said her sisters' implication was that she was unlovable, and the only reason a man would want her would be to use her. Katie added that she had always been third wheel, and the ugly duckling of the family compared to her two "beautiful swan" sisters. Katie warned her sisters to take notice of her, and announced that her moment to shine had arrived and she intended to take the offer she had been given.

Katie added that it had been hard to grow up in Brooke and Donna's shadows. Katie wondered if that was why the two of them were so upset about the idea of her becoming CEO, because Katie would finally learn to stand on her own. Katie accused her sisters of being a little jealous of her.

They denied it and said they were only looking out for her as they had always done. Katie reminded them she had looked out for them, too. Katie asked her sisters to support her as CEO of Forrester, and promised them that if they did, she would never let them down. Brooke spoke for herself and Donna and announced firmly that the two of them would never support Katie as CEO of Forrester under any circumstances. Katie looked crushed.

A doctor paid a home visit to Stephanie and informed her that her blood pressure was still elevated. A worried Steffy and Pam stood by watching as Stephanie was examined. Pam asked the doctor to tell Stephanie she was not well enough to return to work. Stephanie brushed off the suggestion and called Pam a "drama queen."

The doctor agreed with Pam and cautioned Stephanie against pretending that she hadn't had a stroke. The doctor added that the aftermath of the stroke could affect Stephanie's coordination, her speech, and her behavior. Stephanie dug in her heels and stubbornly refused to take time off from work. Stephanie insisted that Jackie M needed her. Steffy pointed out that the family needed her healthy. Stephanie insisted that she was going back to work and warned them about treating her like "damaged goods."

Stephanie thanked the doctor for the visit and showed her to the door. The doctor added that 700,000 people per year suffered from strokes and needed to have some sort of rehabilitation. Steffy asked if that could improve the movements in Stephanie's hand, and the doctor responded affirmatively, provided Stephanie would agree to therapy. Stephanie again brushed off the advice of her doctor and family and said her hands were fine.

Pam and Steffy urged Stephanie to be open with the rest of the family about her stroke, but Stephanie refused. She said it was her body and her choice . Pam pointed out that Stephanie was still having some memory lapses and coordination issues that would eventually be noticed.

Stephanie said she didn't want anyone to know what happened, period. Taylor arrived home and asked the women why Dr. Karen had been there because she noticed her car in the driveway when Taylor pulled in. Stephanie lied and said Dr. Karen had been there to discuss a charity event Stephanie was working on with her.

Pam continued to hint around that it would be a good idea for Stephanie to share the details of her meeting with the doctor, but Stephanie shut her down. Stephanie asked Pam to leave and used the excuse that she was needed at work. After Pam left, Stephanie asked Taylor to make them a cup of....but couldn't produce the word "tea." Taylor filled in the blank on her own and went to the kitchen.

Steffy called her grandmother on the blunder and asked Stephanie if she intended to play charades every time she forgot a common word. Stephanie scowled at Steffy and said she merely had a "senior moment" and asked Steffy to drop it. Steffy pushed Stephanie to confide in Taylor and tell her about the stroke.

Whip stopped by Pam's desk for his daily lemon bar and struck up a conversation. Whip asked Pam point-blank what was going on with Stephanie. Pam played dumb and said she hadn't noticed anything. Whip could not believe that Stephanie's sister hadn't noticed that Stephanie had behaved very strangely recently. Whip reminded Pam of the convoluted speech Stephanie had given at their last office meeting.

Pam dodged again and said Stephanie was a complicated woman and tough to explain. Whip asked Pam to keep an eye on Stephanie and seemed genuinely concerned about her welfare. He added that Stephanie hadn't turned in reports that were due, and it wasn't like her to be late. Pam asked Whip to forget about that and promised she would make sure he got the reports he needed. Pam added that Stephanie had been a little preoccupied lately.

"

Whip looked at Pam in disbelief,. He could tell Pam was covering for Stephanie, but didn't know why.

Taylor arrived back with the tray of tea. Stephanie took the cup with her one working hand, but refused cream, sugar, and a saucer because she couldn't use her other hand to hold them. Steffy glared at her, but Stephanie still refused to tell Taylor the truth.

At Forrester, Eric, Brooke, Ridge, and Donna talked about how they needed to raise money in a hurry in order to chip away at the $100 million loan. Eric said they would have to sell the Malibu beach house, but Ridge said that Stephanie owned it. Eric said that he had negotiated with her to get it back. He had hoped to persuade Steven to return Beth to the United States and live there so that the girls could be with their mother while she was ill. Brooke told him that he was very sweet to think of the Logan family.

Eric left, and Brooke lamented that Katie was mixed up with Bill Spencer. Donna noted that Katie didn't see how wrong it was to be involved with him. Donna couldn't believe that Katie turned her back on Eric and the company. Brooke added that she thought Katie was happy with her job in public relations, but she clearly wanted more.

Brooke said that Katie had been correct that both Brooke and Donna had served as CEO, and Katie seemed to think she deserved to have a chance at it. Brooke said that she and Donna had shortcuts in getting to the top. Brooke believed that Bill was Katie's shortcut to running Eric's company.

Ridge said that Katie had to know that she was not competent to be a CEO. He added that Bill was using her as a puppet. Brooke said that it wasn't going to help any of them to insult Bill. Donna questioned if Bill really loved Katie. Ridge wondered if they should fire Katie when she returned to Forrester -- if they kept the company. They all agreed that Katie's contact with Bill could be helpful to them. Donna said that Katie was not the same girl they once knew. Bill was changing her.

At Bill's place, Katie paced and Bill warned her that she would wear a hole in the carpet. He asked why she let her sisters upset her. He said that neither she nor he did anything wrong. Nobody was going to die or starve because he took over the company. Bill understood that Katie felt she betrayed her sisters' trust by falling in love with him.

Katie wondered what would happen if the Forresters managed to pay the loan. She guessed that the Forresters would fire her, and she quizzed Bill about returning to New York City if his plan to take over Forrester failed. Bill reminded her that he had more invested in their relationship than she did. She countered that she had lost the respect of everyone she cared about. He said that she was starting to see him the same way her sisters did. He added that they were creating doubt and insecurity in her.

Bill told her that together, he and Katie would set the world on fire, and that his life was a whole lot better with her in it. He told her that he didn't want to disappoint her and he didn't want her to disappoint him. He kissed her. Katie said that she would not be his puppet. Bill knew that he could not manipulate Katie. He added that if Katie's sisters thought that he had that kind of power, they were wrong about Katie. She agreed and kissed Bill. He promised that he would not tear her family apart. Katie playfully told him that he might not like the way she ran the company. He suggested that she could be fired, and she agreed.

She promised to cut costs and make it more efficient, but she refused to cut benefits or staff. She prattled on about how executives needed to be exemplary. She added that she wanted to make Bill, her sisters, the Forresters, and the employees proud. Buts he planned to do it her way. Bill listened and smiled. She wondered if he still wanted her for the job.

He pulled her into his arms and told her that no one in the world would dare talk to him like that. She told him that she was not afraid of him. Bill said that he was honored to have her in his life and promised that it would be one hell of a ride toward their future together. He addressed her as Madame CEO.

At Taylor's, Stephanie and Taylor were gabbing about Taylor's recent trip when Steffy came in and told them she was going to bed. She encouraged her grandmother to get some rest, as well. Taylor laughed and told Stephanie that Steffy's bossiness did not come from her side of the family. Stephanie agreed. She insisted that she was fine, but Steffy persisted that Stephanie had promised she would get more rest.

Taylor intervened and said that it was getting late. Taylor said that she would clan up the tea set, but Stephanie said that she could do it. She tried to pick up the tray, but with her weakened right arm, she dropped it, and everything crashed to the floor. She apologized. Steffy spilled the beans to Taylor that her grandmother had a stroke and spent one night in the hospital while Taylor was gone.

Stephanie was angry and said that she was going to leave to go to Pam's house. Steffy apologized for ratting out Stephanie, but Taylor said Steffy did the right thing. Taylor asked Stephanie to grab her hands. Stephanie had trouble squeezing Taylor's hands. Taylor gently told Stephanie that physical therapy could improve her strength. She noted that Stephanie needed to take care of herself.

Taylor admonished Stephanie because Stephanie had a medical history of strokes. Taylor told her that she would be fine, but she had to make changes. Stephanie insisted that it was all under control. Taylor wanted to know what Stephanie was doing to lower blood sugar and cholesterol.

Taylor said goodnight to her daughter. After Steffy went to bed, Taylor could see that Stephanie was emotionally fragile. Taylor asked why Stephanie had only told Pam and Steffy. Stephanie said she was afraid that people would pity her. She would rather be hit by a train than pitied. Taylor said it was normal to be afraid. She added that other people needed to know so that they could take care of her. With early treatment, she would be fine.

Stephanie asked Taylor to be her friend and not her doctor. Taylor reminded Stephanie that the entire family had learned to deal with adversity because Stephanie had taught them to be fearless. Stephanie admitted that she was no longer fearless. Taylor reminded Stephanie that they had gotten through all kinds of crises together, and would conquer her stroke the same way. Taylor promised that Stephanie would not be alone. They hugged.

Katie went to see Bill at his office before going to work at Forrester Creations. Bill asked if Katie was up to the task, knowing the Forresters and her sisters were treating her like the enemy because Katie supported Bill's takeover of the company. Bill expressed his confidence in Katie.

Bill told Katie she was the perfect intermediary between Spencer and Forrester Creations, which was why Bill had chosen her for the CEO position. Katie worried that she was getting in over her head, but Bill assured her that he had made the right choice in her. Bill kissed Katie and she said she felt like she could do anything when she was in his arms.

After Katie left, Bill spoke with Kristen on the phone. Bill said that everything was going according to plan. Bill told his sister that he had complete faith in Katie and vice versa.

Alone in the office, Bill opened his safe and looked at a DVD case with his father's picture on the front.

At Forrester, Eric told Donna, Ridge, and Brooke that he had spoken to a real estate agent about selling the beach house as well as the cabin in Big Bear to raise money to pay off the bank. Eric said they would be able to make enough to pay off a large chunk of the first payment due. Brooke expressed regret in losing the cabin, but Eric said that they would buy another once they were out of financial trouble.

Ridge was doubtful that they could raise $25 million each quarter to meet the bank's requirement. Eric was determined to make the payments and keep Spencer from getting Forrester Creations. Brooke offered to leverage her assets for the company, but Eric wouldn't let her go into debt for Forrester.

Katie walked into the office and asked what was happening. Eric said they were trying to figure out how to save the company. Ridge disagreed when Katie said that Spencer was the way to save Forrester. Katie explained how Spencer Publications could rescue Forrester and they could all continue working. Eric believed that Bill's tactics were underhanded. Katie countered that Bill was saving Forrester from bankruptcy. Donna claimed that Bill had manipulated Katie.

Katie insisted she had a clear vision of Bill's intentions, but Ridge said that Katie was either naïve or brainwashed. Ridge declared that Bill would fire them all if he took over. Katie said that Bill wanted the Forresters to remain with the company, but Ridge said he would quit before working for Bill. Ridge told Katie she didn't belong there because she was sleeping with the enemy.

Katie asked if she was being fired. Brooke said that was not what they wanted, but from their point of view, Bill had instigated a hostile takeover. Katie said that if Bill hadn't done what he had done, Forrester would have failed. Eric said that he would never accept Forrester being run by Bill Spencer.

Brooke explained to Katie that Bill was taking advantage of their sisterly love. Katie asked Brooke and Donna to trust Katie's belief in Bill. Eric wondered if Bill knew how the situation was tearing Katie apart. Brooke asked Katie to stop Bill from destroying the Logan family and Forrester Creations. Brooke urged Katie to make Bill see things from their point of view.

Katie returned to Bill's office. Bill took his father's DVD out of the PC and tried to hide it on the desk. Bill saw that Katie was distraught. Katie told him that Ridge wanted to fire her and Donna and Brooke said that if Bill truly loved Katie, he would not put her in the middle of the situation. Bill urged Katie not to knuckle under. Katie hugged him and said she would stay strong. Katie noticed the DVD on Bill's desk and asked about it.

Katie reached for the DVD case and saw Bill's father's picture. Katie asked Bill what was on the disk. Bill said it was his father's last words before dying. Bill tossed the case aside and changed the subject. Bill instilled confidence in Katie, telling her that down the road, her sisters would be thankful that Katie accepted the CEO job and saved Forrester. Bill asked Katie to trust him. Katie hugged him and said that she trusted him completely.

Eric returned to his office to tell Ridge, Donna, and Brooke that the sales figures were worse than anticipated. Eric warned them not to panic. Brooke suggested selling the boutiques, but Ridge said that wasn't feasible. Eric was furious at Bill for manipulating the bank to call in the loan. Brooke said they had to combine their assets. Ridge thought that would be counterproductive.

Brooke refused to throw in the towel. Brooke urged them to risk all their personal fortunes to save the company. Brooke was determined to keep Bill from destroying Forrester and Katie at the same time.

At Jackie M, Jackie walked into her office to find Whip waiting for her. Jackie was all business. When Whip asked about Owen's whereabouts, Jackie answered, but was clearly upset. Whip was sympathetic. Jackie reminisced about the Indulge campaign and how Owen had been willing to do anything for Jackie. Jackie confessed to Whip that Owen wanted things to be the way they were.

Whip was surprised when Jackie complained about Steffy's place in Owen's life. Jackie said that Steffy had told Owen that Jackie wasn't good enough for him. Jackie said she had overheard Owen and Steffy talking. Jackie told Whip she had warned Steffy to keep her hands off Jackie's husband. Whip assured Jackie that if Owen were committed to Jackie, nothing Steffy could do would change Owen's feelings.

Whip told Jackie that perhaps Owen was better off with a girl like Steffy because Owen was still a boy. Jackie said she still loved Owen. Whip wondered if love was enough.

At Insomnia, Steffy was having coffee when Owen approached her. Owen noticed her skateboard and Steffy asked if Owen rode. Owen claimed he knew how but preferred surfing. Steffy didn't believe him, and offered to teach Owen how to ride a skateboard. Owen took the challenge, but after a moment's thought, Steffy changed her mind. Owen wondered if Steffy was avoiding him.

Steffy denied that and asked Owen about Jackie M. Owen invited Steffy to go to the office, but Steffy said she couldn't do that because she was with Forrester Creations. Owen suspected the Steffy was turning down his invitation because of Jackie. Steffy admitted that Jackie had asked Steffy to keep her distance from Owen.

Owen was surprised by Jackie's request. Owen said he loved Jackie and that she had filled a void in his life. Steffy admired Owen's love for Jackie and said Jackie was lucky to have Owen. Owen believed he was the lucky one. Steffy apologized if her words to Owen about Jackie had been harsh. Owen appreciated Steffy's candor. Owen assured Steffy that he was devoted to Jackie and that would never change.

At the Forrester beach house, Eric, Brooke, and Rick packed up Rick's belongings as they lamented that they had to sell the beach house. Rick commented that a large jar of sea glass collected along the ocean held memories that spanned his entire lifetime. He remembered that he had taken it everywhere he had ever lived. Eric apologized that he had to sell the place. Rick said it was the sweetest place on the beach, and he added that he would need to store his surfboard somewhere. They all agreed that they would have another beach house one day.

Eric told Rick that he could stay with Donna and Eric until he found a place of his own. Brooke, Eric, and Rick agreed that they would never be employees of Bill Spencer. Rick wondered how Katie could be attracted to Bill. Rick asked why she couldn't see that Bill was using her. Eric said that Katie was in love. Brooke said that they needed to rescue Katie. Brooke refused to allow Bill to destroy her baby sister.

Brooke felt bad and said that Katie's involvement with Bill had hurt the company. Katie's expectations to become the Forrester CEO clearly indicated that she was confused. Eric noted that the sale of the beach house had delivered enough money to start chipping away at the loan. Eric said that they would move on to the next chapter of their lives. Rick hoped that perhaps the beach house buyers would someday sell the beach house, and Forrester could buy it. Eric closed and locked the door with a melancholy look on his face.

Back at Forrester, Eric told Rick and Brooke to hang onto the sea glass. Brooke reminded Eric that there were other beach houses. Eric met with the real estate agent, and signed the papers completing the sale. Rick asked if a family had purchased the property, but the agent said that it was hard to tell. A company had purchased the high-end property and handled it discreetly. She added that the Forresters were fortunate that the buyer had paid full asking price in cash. Eric hoped the new owners loved the property as much as the Forrester clan did.

At Spencer, Bill asked Jarrett about getting all the boxes packed, and snotty Jarrett acknowledged that he was getting there. Bill suggested that Jarrett adjust his attitude. Bill warned that Spencer was a business, not a nonprofit organization. Katie entered and noted that Jarrett seemed upset about the takeover because he had a soft spot for Forrester. Bill said that Bill had only one soft spot for one Logan. He told Katie that he had a surprise for her.

Katie said that Bill was full of surprises lately. She said that he had asked her to clear her schedule and she had. She wondered what was so important, and Bill said it was the biggest surprise yet. Katie wondered if he had bought another company. Bill reminded her that he already had made her CEO of one company. He joked that Katie wanted to head up a conglomerate.

Katie laughed and said that Bill had made her feel confident and sure of herself. Bill admitted that Katie had enabled him to discover some things about himself. Katie said that they were a match made in heaven. Later, Bill blindfolded Katie and escorted her into the beach house. After removing the blindfold, Katie remarked that Eric would be upset if he found them there. Bill told her that he had purchased the beach house. Katie was in shock. Jarrett delivered a bunch of boxes and dropped some of the contents. Bill asked him to place the rest of the boxes on the porch. Bill got rid of Jarrett before he started chatting with Katie.

Katie said that she didn't know what to think. Bill said it needed some interior design work, but he enjoyed the ocean view. He said that he had always wanted a beach house, and the hotel suite was getting old. Katie seemed suspicious, but Bill told her that he paid full asking price. She guessed that Eric didn't know that Bill was the buyer. Bill admitted Eric didn't know.

Bill said Forrester needed the money, and the sale would prevent them from falling further into debt. He reminded Katie that he wasn't there to talk about business. Instead, he told Katie that she had gotten under his skin like no other woman. He admitted that he liked it. He said that he wanted Katie to join him every day to sit on the beach and watch every sunset. He wanted to go to sleep with her every night and wanted the beach house to be their source of inspiration. He invited Katie to move in with him, but he admitted it was a big step.

Bill added that she had touched him in way that he didn't think was possible. He said he didn't want to live without her. Katie agreed that she felt the same way, and hoped that one day, everyone would see Bill the same way that she saw him. She agreed to move in with him, and they sealed the arrangement with a passionate kiss and embrace.

At Insomnia, Steffy and Owen met for coffee. Owen said that Bridget had left some sketches on the Shady Marlin, and he had to pick them up. He invited Steffy to join him. At the Shady Marlin, Owen was impressed with the boat, and then Steffy disappeared. She returned and said that she was taking him for a ride. She started up the boat and they left the marina. Steffy told Owen that she was taking him to Paradise Cove, where she and Phoebe often went as kids.

She said that he needed a mental health holiday, and she placed a captain's hat on him. She took a photo of the two of them with her phone. Owen worried that they were getting out onto the ocean, but Steffy scoffed at his fears. Owen admitted that it was beautiful. He suggested that it would be a great place to take Jackie. Steffy reminded him that Jackie was not on board. She said that Owen should open himself up to someone new and someone who was more like him than Jackie. Owen looked away, but Steffy added that she just wanted Owen to be happy.

On Nick's boat, Steffy told Owen that she wasn't a home wrecker, and that she wasn't coming on to him -- she said she was just expressing her concerns to Owen as a friend. Steffy wondered whether Jackie was right for Owen. Owen thanked Steffy for caring, but quickly changed the subject and suggested that they go swimming.

Steffy and Owen donned bathing suits and enjoyed a swim. Back on the boat, Steffy suggested that they jump into the water again. Owen said that he preferred to stay on board the boat. Steffy said that she didn't want to go into the water by herself. Steffy started to pull Owen into the water, but she lost her footing. She banged her head against the side of the boat and fell overboard. Owen looked on in horror as Steffy hit the water.

Owen pulled an unconscious Steffy out of the water and onto the ship's deck. Realizing that Steffy wasn't breathing, he began CPR. He urged Steffy not to die. Steffy spit up water and regained consciousness. After she finished coughing up water, Steffy weakly whispered, "You saved me. You saved me."

At the beach house, Katie told Bill that living at the beach would be a lot different than living in a hotel suite -- he wouldn't have maid service or room service. Katie jokingly wondered if Bill had invited her to live with him so that she could be his maid. Bill said that Katie would be the hottest maid he had ever had. The couple began kissing.

Brooke unlocked the door to the beach house and entered. She was shocked to find Bill and Katie there. Brooke said that she had returned to the beach house because Rick had forgotten to leave his garage door opener. Brooke then realized that Bill owned the dummy corporation that had bought the beach house.

Katie told Brooke that Bill was planning on living at the beach house. Brooke was upset that not only did Bill want Forrester Creations, but he also wanted one of the Forrester homes. Bill said that his purchase of the beach house would help Forrester pay off the bank. He added that he couldn't win with "you people." Katie said that Bill had a point. Brooke accused Katie of being naïve. Bill said that the Logan sisters clearly had a lot to talk about, and that he had a lot of work to do. He gave Katie his keys to the house, and took Brooke's keys away.

After Bill left, Brooke said that she was right about Bill using Katie -- and that she wished she wasn't, for Katie's sake. Brooke told Katie that she wished Katie would open her eyes and look at what really was going on. When Brooke suggested that they go home, Katie told her sister that she was home -- that Bill had asked Katie to move in with him and that she had agreed.

Brooke was shocked that Katie was moving in with Bill. She told Katie that no one knew anything about Bill's past relationships. Katie said that she wasn't walking down the aisle with Bill. Brooke reminded Katie that Katie had only known Bill for about two months. Katie told Brooke how insulting it was for people to continue to tell Katie that Bill was using her.

Katie said that she knew Bill better than anyone else, and what she didn't understand was why Brooke was so convinced that Brooke's judgment of Bill was right, and Katie's was wrong. Katie reminded Brooke that Bill had been open and honest with his intentions since he arrived in Los Angeles. Brooke realized that she wasn't going to get Katie to change her mind about Bill. She hugged Katie and said that she hoped Katie was going to be happy, because she deserved it. Katie asked Brooke not to hate her.

Brooke returned to Forrester and called a private investigator in New York. She didn't give her name, but asked the investigator if he might have any personal information on Bill Spencer, Jr. Having a sudden change of heart, Brooke told the investigator that she wouldn't be needing his services, because her sister would be very upset with her. After Brooke hung up the phone, she said to herself, "Katie, be careful."

Bill, looking through a large binder, paced the floor of his TV studio. Jarrett arrived for a meeting with Bill. Jarrett was curious as to why Bill wanted to meet at the studio. Bill said that he was having a meeting with Justin about the Spencer fashion talk show, because he wasn't happy with some aspects of the production. Jarrett agreed with Bill that the show needed some spicing up. Jarrett asked Bill if he was going to put Justin in charge of the show. Bill said that he was considering it -- and that he was also considering having Jarrett work with Justin.

Bill changed the subject, and he handed Jarrett the business card of a luxury estate jeweler. Bill said that he had purchased something that was in the safe at the jewelers. Bill told Jarrett to bring the piece of jewelry directly back to Bill at the studio. Bill warned Jarrett to be very careful with the piece -- that it was something very special to Bill.

After Brooke left, Katie began unpacking. While placing some books on a shelf, she came across the DVD case with the picture of Bill Spencer, Sr., on the cover. She remembered that Bill had said that the DVD contained some of Spencer's last words before he died.

Overcome by curiosity, Katie inserted the DVD in a laptop computer. The DVD contained a recording of the elder Spencer speaking to Bill. Spencer spoke about what a bad job he had done as a father, and that the recording contained the "last negotiation" with Bill. Spencer went on to say that the empire that he had built was Bill's to keep, in exchange for what Spencer was about to ask.

As the DVD continued playing, Spencer told Bill that Stephanie Forrester was the only woman who Spencer had ever loved. Spencer spewed contempt for Eric for the way that Eric had treated Stephanie. Spencer said that Eric had cheated on Stephanie openly, and often, yet Stephanie had remained loyal to him.

Spencer continued, saying that it had broken his heart when he had learned about Stephanie's ouster from Forrester Creations, and her replacement by some "corporate chorus girl." Spencer's condition for leaving his empire to Bill was that Bill had to avenge Stephanie. Spencer said that Bill should grind Eric into the dirt, along with everyone who had demeaned or disrespected Stephanie -- including Brooke Logan and her sister, Donna. Spencer ended the recording by telling Bill to take away everything that was dear to Eric, Brooke, and Donna, using any means that Bill could.

Bill entered the beach house and saw Katie watching the DVD. He was extremely upset, telling Katie that although she knew the DVD was very personal, she had taken it upon herself to watch it. Bill sinisterly said that Katie shouldn't have done that.

Bill said that he had trusted Katie. Katie replied that she had trusted Bill until she saw the DVD -- with Bill's father sending Bill on a mission to settle a score with Eric Forrester. Bill assured Katie that it was his father's wish, and not Bill's, to take down Eric. Bill reminded Katie that he wasn't his father. Katie said that it appeared as if Bill was following his father's instructions.

Katie wondered again if she was just a pawn in Bill's world. Bill grabbed Katie and kissed her passionately, and told her never to question his intentions with her. Bill said that he didn't want any companies or any money if it meant that he had to spend one day without Katie. Bill told Katie that he would never use her for anything, except for making his life richer. He asked Katie to tell him that she believed him. Katie responded by continuing their kiss.