At the jail, Stephen urged Brooke to refuse Stephanie's deal. He also expressed his anger about Brooke leaving Forrester Creations; however, she didn't want to discuss her resignation. She insisted that they take the deal, but he urged her to trust Bill, not Stephanie.

After Brooke left, Stephen was pleasantly surprised to see Pam enter for a visit. Jarrett spied on them through the glass pane in the door as she presented Stephen with lemon bars that the guards had dissected while checking for weapons. Stephen spoke about Stephanie's deal, which Pam hadn't known about. He hoped that his daughters would refuse it. He felt that his daughters were all that he had left, and he wanted them to be well provided for, even if it meant spending his life in prison. Pam corrected that his daughters were not all that he had left.

Pam encouraged Stephen to let his daughters take the deal, but he rasped that Stephanie wouldn't rob his girls again. He apologized for his temper and for always causing Pam grief. He regretted not seeing her kindness and beauty before it had been too late. Jarrett peeked in again as she grasped Stephen's arms. The guard, however, prohibited her from touching Stephen.

When Stephen returned to his cell, he told himself that he had to find a way to get out of there. Staring at Beth's lace, he promised to make up for his mistakes. He vowed that he'd one day be the winner, and Stephanie would be the loser.

At home, Bill and Katie played chess in their underwear. He asked her to trust him about the arbitration meeting that day, because he'd do what was best for her family. She trusted him, but she wished he'd tell her what his plan was. Jarrett called Bill to say that he was in place, but he felt uncomfortable with their plan. Bill quipped that he paid Jarrett to work, not worry.

At the office, Ridge, Steffy, Eric, and Stephanie gathered before the arbitration meeting. Ridge wondered if Donna would really walk away from 12.5% of the company, and Eric replied that she'd do it to help her father. Stephanie acknowledged that because of his marriage, Ridge was caught in the middle; however, keeping the family in control of the company was paramount. She stated that Steffy took great pride in returning the company to him and Eric. Steffy grinned, and Ridge hugged his daughter.

In the corridor, Brooke met Bill and Katie outside Ridge's office. Justin arrived to speak on Donna's behalf. Brooke and Katie anxiously inquired about Bill's plan, but he wouldn't reveal it. Brooke warned him not to attempt a return to Forrester at their father's expense.

Stephanie ushered everyone into the office, where they met Clayton, the arbitrator, and Gloria, the Forrester attorney. Clayton reminded them that in the end, they'd be bound by his decision. Justin opened the discussion by asserting that Stephanie's offer to plead on Stephen's behalf couldn't guarantee a specific judicial outcome. Bill chimed in that it was unacceptable that Donna would lose the 12.5% of the company, but Stephen might still serve jail time.

Bill explained that Donna was too distraught to be there that day, because she'd been locked in an exterminator's truck and escorted from the premises after her last visit. He outlined what Donna was entitled to in the divorce; however, he felt that she deserved more after the Forresters had discarded her like trash. Stifling a laugh, Stephanie replied that Bill just wanted to use Donna's stock to gain a foothold at Forrester.

Bill excused himself to the hallway to take a call from Jarrett, who reported on Pam's visit with Stephen. Though Jarrett hadn't overheard Stephen and Pam's conversation, he still doubted that Bill's plan would work. Bill ordered Jarrett to carry out his orders, or Jarrett would be working for the Forresters for half the rate that Bill paid him.

When Bill returned to the arbitration meeting, he declared that there'd be no deal. Brooke asserted that they'd take the offer, but Bill replied that it wasn't Brooke's call. "It's not yours, either," Stephanie retorted. Donna's attorney, Justin, backed Bill; however, Katie and Brooke continued to worry that they were risking their father's life.

Bill took his wife and sister-in-law into the corridor to beseech them to trust him; however, without knowing Bill's plan, they were leery. Brooke exclaimed that they were running out of time, but Stephanie stuck her head out of the office to say that time had run out. She commanded them to decide, or she'd retract her offer.

Reentering the room, Brooke declared that they'd take the offer, but Bill insisted that they wouldn't. Brooke yelled at him to stop playing games with their father's life. Ridge calmed everyone down, but when Bill reasserted that the 12.5% rightfully belonged to Donna, Stephanie vowed to use all the legal recourse available to her to ensure that the court locked Stephen away for a long time. Brooke confirmed that they'd take the offer, with or without Bill's cooperation. Bill's phone chimed, and after looking at it, he advised Brooke to hold off, because they'd just procured a witness who could say for certain if Stephen had committed attempted murder.

Pam strode into the room with Jarrett and conveyed her knowledge of the dilemma. She told everyone that it had never been her intention to kill Stephanie at the cabin, and Stephen certainly wouldn't have done it, either. Stephanie became perturbed as Pam went onto to explain that the grieving Stephen wasn't a cold-blooded murderer. "You son of a bitch, you're using her just like their father used her!" Stephanie yelled at Bill.

Bill noted that "the complexion" of the meeting had dramatically changed. He figured that "six-gun Sally" had an itchy trigger finger, because she'd never been in any danger from Stephen at the cabin. In conclusion, Bill stated that Stephen should go free. Stephanie silently fumed as Bill said that it had been a pleasure doing business with them.

At Forrester, the arbitrator met with Ridge, Steffy, Eric, Stephanie, Pam, Katie, Justin, Jarrett, Bill, and Brooke. While Pam was blabbering about what had happened at the cabin, Stephanie tried to silence her, but the court reporter was getting every bit of it on record.

Stephanie kept trying to stop Pam from testifying, and Stephanie accused Bill of using Pam. Eric whined that Bill was trying to get his foot in the door at the company. The arbitrator listened intently while Pam said that Stephen was out of his mind with grief the night at Big Bear when he, Pam, and Stephanie were together.

Pam further explained that Stephen would never have shot anyone. She added that instead, it was Stephanie who had shot Stephen. Stephanie asked for a moment with her sister, and she begged Pam to stop, but Pam refused. Brooke, Katie, and Bill realized that Pam was the witness they needed to refute Stephanie's claims that Stephen had tried to murder Stephanie.

Ridge realized that Pam's testimony was going to make a huge impact. Bill was thrilled that Jarrett had gotten Pam to the meeting in the nick of time. The arbitrator said that he had heard enough. He left the room to make a decision. Stephanie tried once more to force the Logans to sign a document to save their father with Stephanie's supposed testimony that would ask for leniency, but Brooke and Katie refused. Stephanie angrily promised that she would do everything in her power to send Stephen to jail for a long time.

The arbitrator returned and announced that Donna legally had every right to the 12.5 percent of stock in Forrester, and that it would be turned over immediately. Eric was furious that Bill Spencer was going to become an owner again. Brooke argued that it was Donna's stock, and Bill didn't own it. Ridge suggested that Donna should sell her stock to Brooke and not to Bill.

Steffy chimed in and said that Brooke did not want to become an owner at Forrester because she had left the company. Brooke silenced all of them by reminding them that Donna owned the stock. Steffy, Eric, and Ridge continued to worry that Donna would sell the stock to Bill.

Outside the office, Stephanie chastised Pam for testifying against the Forresters. Stephanie reminded Pam that Stephen and all the Logans were using her. Pam retorted that she planned to take her chances. She said that everyone deserved a second chance. Pam reminded her sister of all the horrible things Pam had done to Eric and Donna, yet they welcomed her back to Forrester and gave her a job and a second chance. Pam believed that Stephen also deserved a second chance.

At the jail, Hope visited Stephen and told him about the great scholarship offer she had back East. She added that Oliver had convinced her to go because it was a once-in-a-lifetime offer. Her grandfather assured her that Oliver sounded like a great guy, and seemed to want the best for her. Stephen wanted assurance that no one was forcing Hope out of Forrester as they had done to Donna and Katie.

Stephen told his granddaughter that he was very proud of her, and Beth would also be proud. Hope shared that she and Oliver were in love. She admitted that they would be on opposite sides of the country, but they were going to make it work. Stephen said that he had felt the same way about Beth.

After Hope left, Stephen had returned to his cell, and Bill visited. Bill was on the phone with Justin, who was working on bail arrangements for Stephen. Bill added that no one would be prosecuting Stephen after they had heard from Pam earlier in the day.

Bill congratulated Stephen on winning Pam over to his side. Bill wondered if Stephen was using Pam or had feelings for her, but he added that he didn't care. Bill was happy that it had all worked out. Bill told Stephen that he didn't look good in the prison orange garb. Bill assured Stephen it was time to leave, and he added that he and Stephen made a good team.

Bill shared that Donna had received her 12.5 percent of Forrester shares, and that it meant a new era for the Logans. Stephen thanked Bill for taking care of the Logan girls. Bill promised to continue, and he reminded Stephen that they had to protect Donna's shares.

Bill said that Stephen needed to work on Donna in order to get control of Forrester. Stephen reminded Bill that it was a small portion of stock, but Bill responded that they could build on it. Bill planned to buy the shares and get his foot in the door at Forrester. Bill promised that he would one day control Forrester Creations again.

At the jail, Justin, Katie, and Bill showed up to spring Stephen, and he thanked all of them for their help. Katie quizzed her father about his feelings for Pam, but Stephen didn't get a chance to answer because Pam entered. Pam said that she wanted to be the first to greet him when he was released, but she saw that his family had beaten her to it.

Everyone thanked Pam for her help, and then Stephen asked Justin, Katie, and Bill to leave. When they were alone, Stephen told Pam that he was truly indebted to her. He hoped that she would give him the chance to show her that he had true feelings for her, and Pam hugged him.

At Forrester, Ridge and Stephanie worried about what would happen with Donna's stock. Stephanie also worried about what would happen to Pam because she was so smitten with Stephen. Later, Stephanie met with Thorne, and shared her concern about Pam and Stephen. Stephanie told Thorne that Pam was probably already with Stephen since Stephen would be getting out of jail soon.

Thorne looked worried and asked his mother if he should talk to Pam or to Stephen. Stephanie discouraged the idea. Thorne hoped that Steffy could work her magic on Donna to get the shares back into Forrester hands.

After Pam left the jail, Stephanie visited Stephen. She warned him to stay away from Pam. Stephanie added that if he caused any trouble for Pam or for the Forrester family, Stephen would never be safe. Stephanie advised that Stephen would wish that he were back in jail if he did anything because it was safer.

At Forrester, Oliver and Hope walked hand-in-hand in the hallway, and Steffy spied on them. Oliver paused to give Hope a hug and a kiss, and he saw Steffy staring at them. Oliver, Hope, and Steffy met with Ridge and Brooke to discuss Hope's plans to pack up and move to Boston.

Ridge was concerned that it had all happened too fast. He reminded Hope that she could always change her mind. Hope disagreed, and said that branching out and getting away from her family was a good thing.

The conversation turned to Brooke's decision to leave Forrester. Hope was shocked that her mother was leaving Forrester, but Ridge encouraged Hope to let it go. He said that it was what Brooke needed. Hope was suspicious that Steffy had something to do with forcing Brooke to leave the company, but Brooke lied that it was all her idea.

Hope, Oliver, and Ridge left, and Steffy said that she needed to talk to Brooke. Steffy demanded that Brooke persuade Donna to return the shares that the arbitrator had given to her. Brooke insisted that Steffy was crazy to think that she could overturn a legal decision. Steffy argued that Donna did not deserve the shares and needed to return them to Eric, who would give her a fair price for them.

Brooke refused. Steffy warned that if Brooke didn't persuade Donna to return the shares, their deal for Steffy's silence about Brooke and Oliver's mistaken-identity sex was off. Steffy threatened to break the news all over the world if Brooke failed to return Donna's shares to Eric.

Steffy said that Forrester had to be Logan-free, and that if Donna had shares in the company, it would not be Logan-free and that was unacceptable. Steffy explained that it was her intent to rebuild Forrester with her family and no Logans. She felt that her mother, father and grandparents were the rightful owners.

Brooke was surprised at Steffy's demands, and she warned that Steffy had gone too far. Brooke chastised herself for ever trusting Steffy. Brooke warned Steffy that she had overplayed her hand with her latest blackmail deal.

Brooke figured that Steffy would be taunting and blackmailing Brooke for the rest of her life if she gave in again. Steffy claimed that she wasn't bluffing, but Brooke angrily glared at her, and wondered what Steffy thought her parents would think of her after her latest blackmail deal.

At home, Hope was packing, and Oliver helped her. They talked about how much they were going to miss one another. Hope told Oliver that it was only with his encouragement that she had made the decision to move away. She said that she trusted him and her mother more than anyone in the world.

At Jackie M, the team was tense while waiting for Nick's meeting to start. Aside, Aggie guessed that Bridget was upset with her. Bridget asserted that it wasn't Aggie's place to tell Nick about the baby, but Bridget also figured that she shouldn't have put herself in that position to begin with. Aggie claimed that she'd told Nick because he'd had a right to know. Bridget quipped that she was sure it'd had nothing to do with the possibility that he'd be single again.

Jackie reintroduced Bridget to Amber, and Bridget politely hoped that her and Amber's paths wouldn't cross at work. Nick breezed in as if it were business as usual. When he convened the meeting, Whip suggested that they wait for Owen. "Owen's not invited," Nick replied. Nick announced to the team that his soon-to-be ex-wife was pregnant with "the abdominal showman's" child. Whip gasped, and Nick realized the employees didn't know about the predicament. "They do now," Jackie uttered with dread.

Nick preferred to keep the information within the company, but Whip said that it'd be tough because the press would have a field day. "I thought Forrester was drama," Amber snickered to Jackie and Bridget's dismay. Before leaving, Nick advised an anxious Whip to figure out how to handle the press. Bridget left, too, and Amber and Whip figured that Aggie and Jackie had known about the affair. Jackie stated that nothing would sever her tie to Owen, but Whip didn't think they could say the same about Nick and Bridget.

Bridget followed Nick to his office to say that it was good to see him back at work. She conveyed that the company needed him, and she needed him, too. She knew that it was asking a lot, but she wondered if he could give her a chance to make things right. Nick replied that they couldn't erase what had happened, or make the baby be his.

Nick said that sometimes he'd see her, and he'd forget all the things that had happened. Then it would hit him that she wasn't his wife anymore, and the baby wasn't his. He wished that he could get over it and be in the child's life; however, he knew that it just wouldn't happen. "So it's time to move on," he concluded, and Bridget cried.

Bridget strode into Jackie's office and sobbed that it was really over for her and Nick. Jackie said she was sorry and hugged the devastated Bridget.

Back in Nick's office, Nick stared at two photos of Bridget and him. He tucked them into a drawer, and Aggie entered. He thanked her for being honest with him when no one else had been. He wondered how to repay her, and she coyly replied, "A girl's gotta eat." Nick invited Aggie to dinner and thanked her again, because her honesty had meant a lot to him.

In Ridge's office, Steffy claimed that she was acting in the best interest of her family, who'd waited far too long to have the company back. She ordered Brooke to get the shares from Donna, or everyone would know about Brooke and Oliver. Brooke complained that Steffy was holding the mistake over Brooke's head. Steffy replied that she'd worked way too hard, and Brooke didn't have a choice. Reeling at Steffy's gall, Brooke charged out of the office.

Later, Stephanie entered, worrying that Steffy's hard work in regaining the company had been in vain. Steffy, however, had a feeling that the company would remain 100% Forrester. Stephanie expressed confidence that Steffy would beat the Logans at their own game.

At home, Hope suggested to Ridge and Oliver that everyone celebrate her last night in town by the pool. A morose Brooke entered, and Hope comforted her mother about the move to Boston. Ridge and Hope left to find bathing suits, and Brooke informed Oliver that Steffy had amended the terms of the deal. To combat Steffy's incessant blackmail, Brooke felt that she had to tell Ridge the truth about what had happened at the graduation party.

Upon hearing Steffy's new demands, Oliver wondered if Brooke could convince Donna to do it. Brooke reasoned that Steffy would just use the mistake as leverage later, and Brooke refused to live under Steffy's thumb. Oliver worried about how it would affect Hope, but Brooke thought that she could still keep it from Hope. A dubious Oliver requested a chance to plead with Steffy once more; however, Brooke didn't think that anyone could reason with Steffy, but Ridge. Brooke figured that if she could get Ridge to accept it, then he'd silence Steffy.

Outside, Ridge and Hope reminisced about fun times at the pool. She stated that she'd had many good memories, and he said she didn't have to leave. She conveyed that she trusted Brooke and Oliver, who thought the move was best. Ridge went inside, and Oliver strode up.

Hope listened to Jason Castro's "That's What I'm Here For." She felt that the song was perfect for her last night in L.A., and she cited that there were just 127 days until winter break. Oliver expressed that he loved her no matter what. They kissed, and she wondered what was keeping her parents.

Inside, Brooke paced until Ridge entered. She requested to talk to him about something that could affect the rest of their lives. She revealed that it was about Oliver and the graduation party. Ridge replied that he'd already admitted that he'd organized the party, not Oliver. She insisted that it really had been Oliver, though she wished it hadn't.

Brooke expressed regret, because she'd thought she was being fun and spontaneous; however, she'd wound up hurting the people that she loved the most. Ridge offered his support, but implored her to tell him what was going on. He asked if it had to do with Steffy, and Brooke stated that something was being held over her head. She was ashamed, and she couldn't keep it from him any longer. Ridge became apprehensive as she admitted that she'd made a horrible mistake, and she prayed to God that he could forgive her.

In Ridge's old office with Stephanie, Steffy planned a party to celebrate the official end of the "Logan Occupation." Taylor arrived, and Steffy deemed the company a "Logan-free zone." Steffy informed her mother that, as they spoke, Donna was returning her shares in the company. Stephanie added that Brooke had resigned, and a flabbergasted Taylor wondered what had become of Hope. Steffy explained that Hope was on her way to Boston, and "Hope for the Future" was in the past, just like the rest of the Logans.

Stephanie decided to reward Steffy's efforts by giving her the office in which they stood. Steffy gasped, and Taylor enthusiastically approved, because Steffy had returned the company to what it had once been: a design house run by one of the world's greatest fashion families.

After Taylor left, Stephanie presented Steffy with a gift. Opening a velvet box, Stephanie said that the jewelry inside represented their family values: loyalty, integrity, honesty, and love for family. Steffy gasped as she gazed at the sparkling brooch. Stephanie stated that Steffy had rid them of Brooke, and Stephanie hoped that Ridge would someday do the same for himself.

Before Stephanie left, she wished that Steffy would reveal what she had on Brooke. Stephanie bet that it was sexual. Steffy said it only mattered that Brooke and her family were gone, and they'd never pose another threat to the Forrester family.

Poolside at Brooke's house, Oliver and Hope kissed, and she worried about missing him. She wondered why she was leaving, because all she wanted to do was be with him. He reminded her that she was going away to school to learn to stand on her own. Wishing that things were different, Oliver conveyed how hard it would be for him to get along without her.

Hope noted that Oliver made their separation sound permanent. She stated that she wouldn't be gone forever, but while she was away, she requested that he steer clear of Steffy. He nervously replied that he had to work with Steffy. Hope said that she trusted Oliver, but she knew that Steffy would hit on him every chance she got.

Inside the house, Ridge suggested that Brooke's issue might not be as bad as she thought it was. Assuring him that it was, she said he needed to hear it from her, not his daughter. She stated that Steffy had threatened to create a scandal to hurt Hope unless Brooke resigned. A puzzled Ridge asked if Hope had done something. "No, it was something I did," Brooke replied.

Brooke conveyed that she and Oliver had encouraged Hope to leave town to protect her from Steffy. Ridge wished that Brooke and Steffy would settle their differences, and Brooke replied that she hadn't thought that one of their children would cause a rift between them again.

Brooke explained that the night of the graduation party, everyone had looked the same. Ridge and Oliver had dressed the same, and so had she and Hope. Brooke recalled donning Hope's necklace after Marcus had given it to her for safekeeping. When "Pose" had played, it had reminded her of their unfinished business in the steam room. A confused Ridge wondered what the steam room had to do with things.

Brooke reminded Ridge that they'd been about to make love in the steam room, but stopped to prepare for the party. She said she'd wanted him badly, and later, she'd been on the dance floor. Brooke paused, and when Ridge looked expectantly at her, she stammered that she'd made a mistake. She explained that "we'd" gotten carried away, and she'd whispered to him that she was ready. "You did?" Ridge incredulously asked. Staring into space, Brooke continued, "And then I took your hand and led you outside, and we made love."

Ridge chuckled, saying that he didn't remember that. Brooke reasoned that he wouldn't remember, because it hadn't been him. Still not grasping what she was saying, Ridge wondered who it had been. Brooke explained that it had been Oliver. Ridge laughed and said that Brooke couldn't really be saying what he thought she was saying.

Brooke reiterated that everyone had been dressed the same, and she revealed that Hope and Oliver's pass code for intimacy had been "I'm ready." Connecting the dots, Ridge restated that she'd mistaken Oliver for Ridge. "And the two of you went outside together? Oh, my God, Logan," he gasped in realization. Gazing at her in disbelief, he asked, "You and Oliver? You and your daughter's boyfriend!"

Brooke stated that she and Oliver had never removed their masks, and they hadn't known that they'd been with the wrong people. "All this at a high school graduation party?" Ridge asked. He reeled at the inappropriateness of it all, especially since she'd been a chaperon.

As Ridge paced, Brooke swore that she hadn't figured it out until later. She'd wanted to keep the horrible mistake a secret; however, Steffy had learned about it and turned it into a bargaining chip to get Brooke out of the company and Hope out of town. Brooke worried that Steffy, who'd made even more demands, would never stop threatening Brooke with it.

"You and your daughter's boyfriend," Ridge repeated. He stated that far-fetched things like that seemed to only happen to Brooke. "Logan, who else would get themselves into such a mess, except you?" he asked. With a grave sigh, he uttered, "My Logan..." Startled by his soft expression, Brooke wondered if he was saying that he could forgive her.

Ridge cupped Brooke's face in his hands and then hugged her. She uttered that she didn't want to lose him. He replied that she never would. Gasping, she said that his love and trust were the greatest gifts that a man could give a woman, and he understood her better than anyone else could. She felt that she could truly say, "You are my destiny." Shaking his head, he wondered, "Oh, Logan, what am I going to do with you?" They kissed and held onto each other.