At the beach house, Brooke appealed to Katie to side with her and Donna and turn against Bill. Bill told Brooke that Katie was staying. Donna asked Katie to speak for herself. Katie told her sisters that she was not going to walk away from Bill because her sisters didn't trust him. Katie said she loved Bill.
Bill explained that Katie was not siding with him against the family. Bill believed that Katie had chosen a better future for Forrester Creations. Bill dismissed the idea that he was taking over Forrester to fulfill his father's wishes.
Brooke said she was thinking of her children and their legacy. Bill said her children would benefit by Spencer buying the company. Bill intended to retain the talent, that being Brooke and the Forresters. Bill offered to pay them all in Spencer stock so they could become stockholders in the company. The stock could then go to the next generation, the children.
Donna was unconvinced. Katie was sure that Bill's plan would work for Forrester Creations. Bill appealed to Brooke, telling her that life was much better without debt. Brooke was intrigued. Bill pointed out that with the Spencer media platform and the Forrester fashions, they'd be a powerful combination. Brooke realized that Bill needed them to achieve his grand plan. Donna refused to listen to Bill's arguments. Donna led Brooke out of the beach house.
Katie explained that Donna and Brooke had seen the DVD. Bill wondered if Katie still had doubts about Bill's sincerity. Katie said she believed in Bill. They kissed. Bill told Katie that he thought that Brooke was savvy enough to buy into his plan. Bill thought that Brooke was starting to come around to his way of thinking.
Katie and Bill were playing chess. Katie said that she didn't appreciate her sisters trying to push her around. Bill reiterated that he was going to make Forrester a vertically integrated company. Bill went on about how he wanted to create an empire using Forrester Creations. Katie believed in his plan. Bill thought that if Brooke could be convinced, the takeover could go much more smoothly.
Katie told Bill that she believed he was driven and ambitious, but so was she. Katie suggested that maybe she was using Bill, not the other way around. Katie pointed out that she had already gotten a lot from their love affair. When Bill tried to make another chess move, Katie told him he had no move, because she had him in checkmate. Bill threw aside the chessboard and pulled Katie into his arms.
At Forrester Creations, Eric was going over the family assets with Ridge. Eric was happy that they were close to the total amount due for the first quarterly payment to the bank. Eric was grateful that that they had been able to sell the beach house to a cash buyer. Ridge started to tell Eric about who the buyer was, but Eric was talking about his regrets about selling the cabin in Big Bear. Eric had hoped to keep the cabin in the family for generations to come.
Ridge explained that they couldn't afford to be sentimental. Ridge said that once the new fashion line sold, they could buy the property back. Eric agreed and said that in the long run, nobody would take the company from them. Eric believed that they would win the battle by staying true to the Forrester values. Eric resented what Bill Spencer was trying to do to Forrester.
Donna and Brooke entered the office with Ridge and Eric. Brooke was surprised to hear that the cabin was already on the market. Eric hoped it sold as swiftly as the beach house had. Donna broke the news to Eric that Bill had bought the beach house. Eric was furious and believed that Bill bought the house to spite Eric. Eric was incensed to learn that Katie was living there with Bill.
Donna insisted on telling Eric about the DVD. Brooke said that they had tried to convince Katie that the DVD was proof that Bill was using Katie. Eric said that Bill's father had always been obsessed with Stephanie. Eric thought that Bill Sr. couldn't best Eric in life, so he had sent his son to do his dirty work. Donna was afraid that there was nothing they could do to stop Bill.
Ridge was angry about Katie's part in Bill's plan. Eric said it was ludicrous to think of Katie as CEO of Forrester. Brooke explained that Katie believed in Bill's vision for Forrester as part of his corporation. Brooke mentioned that they could become shareholders and get out of debt. Eric compared taking Bill's offer to making a deal with the devil.
Brooke said that with their talent and Bill's business acumen, they would be an unbeatable combination. Brooke thought Bill had a point. Donna demanded that Brooke recant, but Brooke thought they should consider Bill's offer before rejecting it. Ridge declared that Forrester was a family-owned business and had to stay that way. Brooke said that with the economy the way it was, family businesses were struggling.
Brooke feared that they would have to sell everything just to hang onto the business. Ridge and Eric believed they could get by like they had in the past. Brooke's cell phone rang. It was Bill. He asked her to convince the Forresters to listen to Bill's offer.
Brooke ended the call and told the family that Bill would be there the next day to make his offer again. Ridge and Donna were not interested. Eric said they were all in agreement that the company was not for sale. Brooke said if Forrester Creations was to survive, they had to consider Bill's offer. Ridge was incredulous.
Brooke said they needed what Bill was offering. Brooke hated the idea of taking Bill's help, but she was realistic. Brooke lobbied for them to accept Katie as CEO and Bill's ownership. Brooke saw no other alternative for the Forresters.
At Taylor's house, Thorne greeted Stephanie. Thorne said he had missed seeing his mother recently and wondered why she had been out of touch. Stephanie said she was busy with work at Jackie M. Thorne asked if everything was all right, because he sensed that something was wrong. Thorne asked if Stephanie had been avoiding the family.
Stephanie started to say that she was simply preoccupied with work, but then she told Thorne the truth about her stroke. Thorne was concerned, especially when he learned that Stephanie had had the stroke over a week before. Thorne asked why Stephanie had kept the news from the family.
Stephanie said she hadn't wanted the family to worry. Thorne told his mother she couldn't go through her recovery alone. Stephanie said she had wanted to be alone, but the team at Jackie M forced her to return to the job, so she wasn't alone. Thorne was relieved that Stephanie was seeing a doctor and taking care of herself. Stephanie admitted that Nick and Jackie had made her feel part of a family.
Thorne reminded his mother that the Forresters were her family. Stephanie knew that, but she appreciated the unconventional Marones. Thorne wanted Stephanie to be closer to him, and he offered to tell the family about her stroke. Stephanie asked him to let her tell them when she was ready. Thorne told Stephanie that Eric truly missed her. Thorne hoped that someday his parents would reunite.
Thorne told Stephanie that business was very bad. Thorne revealed how leveraged Forrester Creations was and that the bank had called in their loans. Thorne explained that Bill Spencer was trying to buy the company out from under them. Stephanie was furious that Bill had not kept his word about staying away from Forrester. Thorne told Stephanie that if Bill got the company, he intended to appoint Katie as CEO.
When Thorne said that Katie and Bill were lovers, Stephanie declared that Katie was ungrateful. Stephanie remembered that Eric had given Katie the public relations job as a favor. Stephanie said if she could, she would shoot Katie. Thorne warned Stephanie to calm down. Stephanie recalled that she had told Eric not to trust the Logans. Stephanie was sure the Logan women would destroy Forrester.
At Jackie M, Jackie and Nick praised Bridget's designs, but Stephanie apologized for not paying attention. Stephanie agreed the designs were fabulous. Stephanie said that she had heard some disturbing news that Bill Spencer was going to buy Forrester Creations.
Bridget was shocked. Whip entered and agreed that the buzz throughout the fashion world reported that Spencer was planning a Forrester takeover. Bridget said that Spencer would never get his hands on Forrester. Bridget believed that her father and mother wouldn't let it happen. Stephanie disagreed. She said that Forrester was liquidating assets, and the company was in financial trouble. Bridget insisted that Eric and Brooke would find a way to keep the company. Stephanie said that Forrester had not been doing well, and couldn't cover the loan payment and the cost of doing business for the next 60 days. She added that Forrester management had not made very good decisions. Bridget angrily warned Stephanie not to blame Forrester's financial problems on her mother.
Nick was concerned. He told the group that if Spencer owned Forrester, Bill Spencer could put a lot of money into Forrester and make competition very difficult. Jackie dismissed the idea and said that Jackie M could file a complaint. Jackie and Whip left the meeting.
Later, Stephanie returned and Nick asked her if she thought Eric would sell the company. Stephanie said that she didn't think Eric had a choice. She added that Eric was a loyal man who had put his trust in all the wrong people. Stephanie said that she couldn't imagine Bill Spencer owning the company with Katie as its CEO. She and Nick both laughed nervously at the thought.
In Jackie's office, Whip picked up some papers, and spotted a brochure on surrogate mothers. Jackie entered and asked if he was snooping. Whip said that he was surprised. Jackie said that Owen wanted to interview surrogates, and Jackie told Whip that she wasn't interested in being a mother again. Whip teased that Nick didn't turn out so well, so it might be time to try again. Jackie smiled, and said that she knew Owen would be a perfect father. She added that she was a grandmother to a baby, and not prepared to be a mother.
At the beach house, Katie walked into the living room with a professional business suit and upswept hairdo. Bill was impressed and kissed her. She said that she needed to impress the Forresters. Justin entered, and said that he had all the papers. Bill announced that Forrester Creations was going to enter the Katie Logan era.
At Forrester, Eric, Ridge, Brooke and Donna were nervously working with models and trying to finish before Bill arrived. They agreed that they did not want to sell the company. Bill, Justin, and Katie arrived. Bill told the group that he had an offer that would save the company. Bill tried to reason with Eric and Ridge, but they were skeptical that Bill had anything they wanted. Bill announced that he had a company history to show them. He played a Spencer Communications video that blathered on about the company's history, work ethic, and determination. Katie pointed out that both Spencer and Forrester were family-owned companies. Donna suggested that the brainwashing department at Spencer was not successful.
Bill was impatient and told Eric that he offered an opportunity, but Eric disagreed. Instead, Bill decided to be brutally honest and chose to treat the situation like a game show called Spencer is Right, with choices of door number one and door number two. He suggested that if the Forresters chose one door, the company would continue to hemorrhage money, and it would be history.
If they choose the other door, they could sell the company to Bill and receive lucrative signing bonuses while employees would retain their jobs. Bill promised to distribute and promote the company's designs while the company remained financially healthy. Katie agreed it was best for Forrester, and Brooke looked thoughtful. Brooke agreed that the proposal had merit.
Ridge stopped Brooke, but she asked him to listen. Justin explained that each of them would receive $12 million in Spencer Communications stock options. He added that the rest of the family and all the grandkids would also become Spencer stockholders. Eric grudgingly agreed that it was a good deal, but said that Ridge should be retained as CEO. Bill disagreed. He said that he only trusted Katie, and that she was his choice for CEO. Katie begged Eric, Brooke, Ridge, and Donna to accept the arrangements. Brooke asked Bill and Justin to leave so that the family could talk to Katie alone.
Brooke acknowledged that Katie could make it work, but she wanted Katie to remain loyal to her family. Brooke wanted Katie to promise not to micromanage the company. Katie listened intently as Brooke insisted that Katie bow to Ridge and Eric, because in creative decisions, they were the best people to make decisions.
They all agreed to work together. Bill entered and said that he had other business to handle and needed a decision. Eric agreed to the arrangements, but insisted that Katie and only Katie would be in charge. He didn't want any other Spencer employees roaming the halls of Forrester. Bill agreed, and promised to get everything in writing. He welcomed them to the new Forrester Creations, a division of the Spencer Publications.
After work, Katie returned to the beach house, but her mind was still on Brooke's suggestion that Katie give her loyalty to the Forresters. When Katie walked into the beach house, she was surprised to see that Bill had set up a romantic dinner for two. Bill said he wanted to celebrate Katie's new job. Katie appreciated that Bill had gone to so much trouble for her. Bill said that he had more plans in store for Katie.
Over wine, Bill proposed a toast to Katie, but Katie toasted him instead. Katie congratulated Bill for finally acquiring Forrester Creations for Spencer Publications. Bill said that there was a time when that would have been his primary goal, but that he had reached a point where he got more satisfaction by elevating Katie to the CEO's chair. They kissed.
A while later, Katie admired Bill's cooking. Bill said he had planned a special night for them. Katie admitted that she was nervous about becoming CEO of Forrester Creations. Bill said she should be excited because he was sure she would succeed. Bill assured Katie that she would not fall on her face. Bill had complete faith in her.
Bill and Katie were slow dancing in front of the fire, and Katie told Bill that she had seen his soft, sensitive side. Katie also appreciated how Bill had handled the meeting with the Forresters. Bill said that he was thrilled that Katie would finally have a chance to prove herself to her sisters. Katie joked that maybe Bill had given her the CEO's job because Bill felt sorry for her. Katie said she was always the bridesmaid, never the bride.
Bill said that it was funny that she had said that because Bill had a surprise for Katie. Bill reached into his pocket and then handed Katie a heart-shaped box. Katie opened it and inside was a big diamond ring. Katie was speechless. Bill asked if she was blown away or just not sure what to do.
Katie couldn't speak. Bill reminded Katie of the night after the fashion challenge and how important Katie had become to him. Bill felt that he and Katie were attached at the heart. Bill promised to love and cherish Katie.
Katie was in tears and couldn't believe that Bill was asking her to marry him. Katie wondered whose life she was living. Katie was astonished that Bill wanted her to marry him. Bill hoped she was saying yes to him. Katie said yes and accepted his proposal.
In front of the fire, Katie and Bill toasted their engagement with champagne. Bill promised to always love Katie and be loyal to her. Katie promised to love Bill and always be loyal to him, too.
At home, Brooke and Ridge were in their bedroom. Brooke told Ridge that she had put RJ and Hope to bed. Ridge was tense from the workday. Brooke massaged Ridge's shoulders and told him that everything would work out. Ridge was upset about Forrester Creations being part of Spencer Publications. Ridge couldn't believe what had happened to the family business.
Brooke told Ridge that they could trust Katie as CEO. Ridge was concerned about Bill's influence on Katie. Brooke said that Katie would keep her word and be loyal to the Forrester family. Ridge declared that Bill could not be trusted. Ridge believed that being part of Spencer Publications would be an impossible situation for Forrester Creations.
Brooke assured Ridge that family meant more to Katie than anything else. Brooke suggested that Katie was more infatuated with Bill because a man like him had never paid attention to Katie before. Brooke didn't think Katie was in love with Bill. Ridge accepted that he had to deal with things as they were. Holding Brooke in his arms, Ridge said that he could handle anything with Brooke by his side.
In bed together, Brooke tried to paint a rosy picture for the future of Forrester Creations. Brooke was certain that Katie would always put family first.
Donna urged Eric to put off the packing until the morning. Eric joked that he didn't want to get off on the wrong foot with Katie. Donna told Eric that the pressure was off with the acquisition complete. Donna urged Eric to concentrate on what he did best--designing. Donna assured Eric it was not the end of Forrester Creations, and that the family was still by Eric's side, especially Donna.
Donna told Eric that what they shared was more important than money and power. Eric wasn't looking forward to how the press would spin the story, but then laughed and realized that handling the press was Bill's problem. Donna told Eric that Katie would come through for Forrester Creations.
Eric lingered in his office, not wanting to leave. Eric and Donna picked up the last boxes and headed out, but Eric stopped in the doorway. Eric was sad that a lifetime of work had reached an end. Donna urged Eric to leave with her.
At the beach house, Katie was getting ready for work and Bill said that he was glad to see his beautiful fiancée. Katie teased that she had a lot of trouble getting ready because she kept staring at her diamond ring. Bill told her that she better get used to it, because he could have bought her something smaller. She disagreed and said that it was perfect. She proclaimed that her entire life was perfect.
Bill asked her if she had any first day jitters as Madame CEO, and she said that she was ready. Bill noted that substantial media buzz was in the air about the changes at Forrester. Katie smiled and guessed that Bill was hinting at something. He opened his laptop and showed her the new Eye on Fashion cover that featured a beautiful photo of Katie. Katie smiled and said that everything was happening quickly. Bill told her that she deserved all the success. He added that he knew he would own Forrester Creations, but he never anticipated that he would have a beautiful fiancée running the company.
At Forrester, Brooke and Ridge were kissing in Eric's old office, and Katie and Bill entered. It had become Katie's new office, and Bill wanted to see Katie sit behind the desk. Ridge couldn't look as Katie sat in his father's chair. Katie said it felt good. Bill told her that he was very proud of her.
Brooke commented that she knew Katie wouldn't let them down. Bill agreed. Katie said that it was a lot of responsibility, but she knew that it would work for everyone. Bill added that Katie would have all the resources available at Spencer. Katie smiled and put her hand up to her face. She told Ridge and Brooke that she was surprised that they had not noticed her ring. Bill proudly told Ridge and Brooke about asking Katie to marry him. Ridge and Brooke were shocked. Katie told them that her life was perfect. Bill hugged Katie, and asked. "Well, which one of you is going to welcome me to the family first?" Ridge and Brooke were speechless.
Later, Brooke talked to Katie alone. Katie told her sister that she could have at least tried to fake that she was happy for Katie. Brooke droned on that she was concerned that Katie was making a mistake in marrying Bill. Katie stopped Brooke and warned her sister not to ruin her happiness. Katie said that she was happier than she had ever been in her entire life. Brooke whined about Katie promising her loyalty to her family. Brooke wanted assurance that the marriage proposal wouldn't change Katie's loyalties. Katie sternly told Brooke that everything would be all right.
At Taylor's, Steffy was talking to herself as her mother entered. Taylor teased that as a psychiatrist, she could assure Steffy that talking to herself was not a good thing. Steffy dished that she was worried about Owen, but did not want her mother to freak out. Taylor said that Owen was a married man. Steffy said that she understood he was married, but she and Owen were friends. Steffy was concerned that Owen had confided that he desperately wanted a baby, and Jackie did not want another child. Steffy excitedly told Taylor that Owen would make a great dad. Steffy conjectured that Owen's marriage to Jackie would not withstand that kind of impasse. Taylor warned her daughter that Owen's marriage was none of Steffy's business.
Steffy confided that Owen felt comfortable discussing his feelings with her, and she refused to ignore him. Taylor laid into Steffy and said that she was starting to sound like Brooke, who justified her concern for Ridge as a reason to be a home wrecker. Taylor told Steffy that she wouldn't stand for Steffy acting the same way. Steffy apologized for getting caught up in Owen's problems, and she admitted that she knew it was wrong. Steffy said that she would back away from Owen.
At Jackie M, Bridget brought Jack to work, and he was all dressed up in an outfit Jackie had bought for him. Bridget wanted Jackie to see Jack before he had his picture taken. Owen picked Jack up and carried him around the room imitating a helicopter. Jack laughed and thoroughly enjoyed playing with Owen. Jackie entered and commented that she was very lucky to have a perfect grandson that she could spoil and fuss over. She was glad that she didn't have to change diapers. Bridget, Jack, and Owen left. Nick told his mother to dish on why she looked unhappy. He added that Owen didn't bug him as much as he used to and that he knew Owen loved Jackie.
Jackie told Nick about Owen's desire to be a dad and choose a surrogate. Jackie said that she didn't want a baby, but she loved Owen, and she wanted to make him happy. Nick encouraged her to think about her decision, because he didn't want her to resent the baby and Owen if she went through with it for all the wrong reasons. He encouraged her to enjoy the fun of being a couple rather than parents.
At Jackie's, Owen was busy preparing dinner as Jackie entered. He apologized for the last romantic dinner he had planned because it had ended in an awkward moment. He still wanted to discuss the surrogate idea, but apologized for getting so caught up in it. Owen said that he understood that Jackie enjoyed being a grandmother. He said that he also understood that she was scared to be a mother again. Owen admitted that he was scared to be a dad. He quickly pointed out that they had conquered many challenges in their marriage, and they were stronger and more committed to one another after every challenge.
He had already selected a few of the surrogates, and he wanted her to look through the book with him. Jackie smiled and said that she knew Owen would make a perfect father. Owen said that they would be perfect parents with a baby who was engulfed by the love that they shared. He teased that it would include strollers, bottles, diapers, and soccer games and he hugged Jackie. Jackie said that she knew they would be great parents. Owen begged her not to overanalyze it. Owen asked her to agree to be a mom. He said that they would have the luckiest baby. Jackie said it was crazy. She laughed and proclaimed that they were going have a baby. She repeated it and they declared their love for each other. Jackie smiled as she hugged Owen.
At the Jackie M office, Bridget surprised Nick with a kiss. When Nick asked what the kiss was for, Bridget said that he had seemed a little preoccupied. Bridget asked if Nick had been thinking about Jackie, and added that Jackie had acted weird and standoffish with Jack earlier that day. Nick said that Jackie was having trouble with children in general.
Bridget was surprised to learn that Owen wanted a baby, but that Jackie didn't. Bridget reminded Nick that Jackie was really good with Jack. Nick told Bridget that being a grandparent was very different from being a parent. Bridget said that she thought Owen and Jackie would work the situation out, and predicted that Jackie would raise a child with Owen.
At Owen and Jackie's apartment, Owen was excited that Jackie had decided that the couple should raise a child carried by a surrogate mother. Owen assured Jackie that it would be a wonderful experience for her, and that she would adore the child. Jackie and Owen hugged. Jackie's face looked as if she were already regretting her decision.
Owen showed Jackie the photographs of a few surrogate mothers that he had picked out. Jackie said that the women all looked like her. He said that his dream was coming true, thanks to Jackie. The couple hugged again, but Jackie still wore the look of regret.
Owen said that he felt selfish -- that what he was asking of Jackie didn't seem fair. He realized that Jackie had agreed to raise a child for his sake, but he wanted Jackie to feel fulfilled, also. A teary-eyed Jackie told Owen that he was going to make a wonderful father, but that she wasn't going to be the mother to his child. Owen was stunned.
Jackie said that she had just gotten caught up in Owen's excitement, and that was why she had initially agreed. Jackie told Owen that for one perfect moment, she thought that she could raise a child, but then she returned to reality. She said that she didn't have it in her to deal with an infant -- that it wouldn't be fair to Owen or to the baby.
The doorbell rang and Jackie opened it to let Steffy in. Owen asked what Steffy was doing there. Steffy said that Jackie had asked her to stop by, although Steffy wasn't sure why. Jackie said that Owen needed Steffy. Owen and Steffy were both confused, and asked what was going on. Jackie said that Owen and Steffy were close friends, and that maybe one day they could be much more -- that maybe they would be able to share something that Jackie would never be able to share with Owen. Owen and Steffy were shocked.
In the CEO office at Forrester, Eric, Donna, and Brooke talked about how upset they were that Spencer Publications had put together the press kit for the upcoming press conference announcing Spencer's takeover of Forrester. Ridge entered, pulled Eric aside, and told his father that Bill had proposed to Katie. A despondent Eric said that was another announcement they were probably going to make.
Bill and Katie entered the CEO office and Eric congratulated them on their engagement. Bill asked if they were all set up for the press conference. Eric said that the reporters were on their way. Brooke approached Katie and asked her if she was nervous. Katie said that she wasn't -- she had dealt with the reporters when she was running the public relations department. Brooke reminded Katie that she was CEO -- and that Katie should remember the promise that she made -- that the Forresters would run the company, with Katie taking the lead.
The press conference began. Brooke spoke first, and told the reporters that they wanted to explain the changes that were going on at Forrester Creations. She said that the changes would keep the company strong and on top of American fashion design. She announced Forrester's new partnership -- she said that Forrester had merged with Spencer Publications.
Bill spoke next and corrected what Brooke had said. Bill told the press that Forrester Creations was a fully owned division of Spencer Publications. He went on to say that Eric and Ridge would continue to head the design team, and that all of the personnel would remain the same, with the exception of the promotion of Katie to CEO.
Katie took the podium to answer the reporters' questions. Jarrett asked if she had been promoted because of her brilliant public relations campaign for the Royalty line. Katie responded that the Royalty line was a success partially because of her campaign, but primarily because of Ridge and Eric's designs. Another reporter asked about the engagement ring on Katie's finger. Bill jumped in and announced that he and Katie were engaged -- and quickly added that their engagement wasn't the reason why Katie was appointed CEO. Bill said that Katie was an exceptional talent, and that he had no doubt that she was going to lead Forrester into a very bright future.
Katie said that Bill's confidence was flattering, but the major players who would lead Forrester into the future were Ridge, Eric, Donna, and Brooke. Another reporter said that if that were the case, then it was surprising that neither Ridge nor Eric was appointed CEO. The reporter reminded Katie that Ridge and Eric had more experience than Katie did.
Katie said that with the vast resources of Spencer Publications, Forrester's future had never looked brighter. She added that, as heads of the design team, Ridge and Eric were going to be very busy, and that she could take the day-to-day operations of the company off their plate.
Jarrett asked who would have the final decision if differences of opinion arose. Bill said that the CEO would have the final word. Another reporter said that the corporate culture of Spencer Publications was very different from that of Forrester. She reminded Katie that Donna and Brooke were her sisters, and that Eric and Ridge were her in-laws. The reporter asked Katie whose side she would be on if issues arose -- Katie's future husband's, or her family's. Katie responded that her husband would soon be her family. The reporter accused Katie of not wanting to answer the question.
Bill prodded Katie to go on the record. Katie said that she was loyal to everyone in the company, but ultimately her loyalty had to lie with one person -- Bill Spencer, the CEO of Forrester's parent company, Spencer Publications. The Forresters were shocked. Katie thanked the reporters and ended the press conference. Brooke ran up to Katie and asked how Katie could "do this" to the Forresters.
After the reporters cleared out, Eric asked Katie who was in control, as Katie had led them to believe that the Forresters would be. Katie said that for the most part, the Forresters would be, but she reminded Eric, Ridge, Brooke, and Donna that they all worked for Bill. Ridge said that he wasn't going to be Bill Spencer's puppet.
Bill overheard Ridge's remark and entered the office. Bill sarcastically said that Ridge had hurt Bill's feelings. Bill reminded the Forresters that they had all signed lucrative, multi-year, iron-clad contracts. Bill made it clear that they worked for him. Eric said that they worked for no one but themselves, and if Bill didn't like that, he could find himself a new design team.
Bill told Eric and Ridge that if they sought other employment, then Bill would file an injunction and they would be enjoined from working in the fashion industry for the length of their contracts. Bill said that it would be a good idea for Ridge and Eric to go back to their offices and design the best clothing line possible. He complimented Ridge and Eric, telling them that they were both creative men, and that he respected their talent. Bill said the Forresters would regret it if they walked away from the company.
Brooke took Katie aside and reminded her that she had promised to stand up for Forrester, and help the company maintain its independence. Brooke asked if Katie was going to stab them in the back. She asked Katie pointedly, "At the end of the day, who are you going to be loyal to? Bill -- or your family?"