Sandy brandished a baseball bat, freaking out at the sight of someone striding into her darkened trailer. She saw that it was Whip, and she shrieked at him to get out. Whip tried to calm her down, explaining that her door had been unlocked and her power had gone out. Sandy insisted that she'd never leave the door unlocked, and she ordered him to leave. He agreed to leave, but not before turning her power back on.
After Whip went to the circuit box, Nick entered, concerned that Sandy hadn't turned on her lights. Just then, Whip restarted the power and returned to the room. Sandy murmured that Whip was just leaving. Whip skirted out, and Nick asked why Whip had been there.
Sandy admitted that Whip and she were cousins. She'd had no idea that Whip worked for Nick until after the insemination. Nick questioned why she'd hidden the relationship, but Sandy didn't have an excuse. Nick figured that it was just one more lie, and he decided that he wasn't leaving until Sandy told him everything about her. Nick urged her to talk about her problem, reasoning that her stress would damage the baby before it was even born.
With great difficulty, Sandy explained that she'd met a photographer while she'd worked at a Los Angeles bar, and he'd offered to take headshots of her for her portfolio. Sandy had gone to his apartment to take the photos. Afterward, a party ensued. The photographer invited her to stay, and soon after, she met an attractive guy. The partygoers coaxed Sandy into taking a tequila shot. "I woke up the next day in some strange apartment, totally violated...That's the day everything changed for me," Sandy sobbed.
Sandy elaborated that she'd gone to the police, who'd taken DNA evidence. Nothing had ever resulted from the case, and Sandy had been trying to forget about it ever since. She said that no one knew about it, not even Whip, and she'd die if Bridget found out. Sandy swore that doctors had tested her and cleared her for STD s. She begged Nick not to tell Bridget the secret. Sandy figured that she'd tell Bridget in her own time, and Nick quietly agreed to keep silent.
Before Nick left, he wondered if Sandy would be okay. She smiled through her tears, relieved that she'd actually unburdened herself to him. Nick said he was glad, too, and he left.
In Katie's office, Bill said that Katie could no longer avoid discussing Steffy's firing. He reasoned that Steffy was the talk of the industry, and firing her was bad for publicity. Bill also considered the negative fallout that would follow once Ridge got wind of it. Katie stood by her decision, and Bill said she was acting like a jealous wife, not a CEO.
Just then, Steffy arrived, and Katie rolled her eyes. Steffy avoided Katie and Bill's gazes, murmuring that she'd be out of the building by the end of the day. Katie wondered what Steffy's next move would have been, had Katie not fired her. Steffy assured Katie that she wouldn't have pursued Bill after he'd rejected her, and Steffy asserted that her firing was senseless, unless Katie actually felt threatened. Katie responded that she wasn't threatened; however, Steffy's actions had made it difficult for Katie and Steffy to work closely together.
Steffy said that Ridge would never view his daughter's firing objectively. Katie realized that, and because she didn't want to rock the boat, she decided that Steffy could stay on. Steffy was astounded that Katie had changed her mind. Katie told Steffy to unpack her office and prepare a full report of the Hollywood campaign. After Steffy left, Bill said he was proud of Katie. "I think that was a big mistake, and I'm not just being a jealous wife," Katie replied.
Katie said she'd keep an eye on Steffy from then on, and Bill apologized for making Katie feel the need to protect her marital turf while she was practically still a bride. Bill was sure he'd make more mistakes, but abusing her trust wouldn't be one of them. He said that he'd never been in love before, and he'd never stop loving Katie.
In Eric's study at the Forrester mansion, Ridge met with Donna, Eric, and Brooke to say that designing gowns to fatten Bill Spencer's pockets made Ridge nuts. Ridge felt uninspired by the new designs, which lacked Eric's signature touch. Brooke noted that the line would appear on Donna's show the following day. Donna worried, because she'd never have agreed to the contest had she doubted that Forrester Creations would win.
Eric said that the line was decent, but he hadn't been concentrating on it, because he'd been preoccupied with devising a buyback of the company. Eric cited that their family had many friends, while Bill had many enemies. Eric was close to raising enough money to offer Bill 10% above Bill's original purchase price. Brooke doubted Bill would sell after he'd fought so hard to gain control. Eric stated that fashion was out of Bill's depth, and Eric wondered how Brooke and Donna would feel about Katie being removed as CEO.
Though Donna and Brooke agreed that Katie had been doing a great job, they felt that the Forresters should own and run their own company. The sisters decided that they would handle Katie if Eric's plan actually manifested. Brooke hoped it would, because she knew how much it would mean to Ridge.