At Brooke's, she tells Donna that she will find another man to love but Donna doesn't think she will find a man she loves as much as Eric. Storm and Katie come in as Donna leaves, crying. Storm wants to know why Donna left and Katie inquires why Stephanie was there. Brooke tells them that Stephanie is reconsidering and if all goes well, Stephen will be free and Storm won't go to jail. Although Storm is skeptical, Brooke reassures him and sends him home. After he leaves, Katie asks Brooke what is really going on.

Brooke tells Katie that Donna has to break it off with Eric for Stephanie to come forward. She mentions it's Donna's decision and Katie tells her there is no decision; Donna has to break it off and free Stephen and Storm.

At the Forrester Mansion, Felicia walks in as Stephanie is pouring tea. Felicia wants to know how she is and Stephanie tells her she's fine. Felicia is puzzled because Eric just asked for a divorce and Stephanie is calm. Stephanie tells her that she hasn't lost him yet and she doesn't intend to. Felicia tells her that Eric asked Donna to marry him and she hopes Stephanie is going to fight the divorce as she doesn't want that bleach blonde blow-up doll for a stepmother. Stephanie tells her not to get worked up because even if she signs the papers, he can't remarry for six months and a lot can happen in six months. Felicia asks her what she's up to. Stephanie tells her that when you think your down for the count, all of a sudden your back up and fighting again. She thinks Donna is smart and hopes she does what is best for everyone.

At Nick and Taylor's, he comes downstairs and announces Jack is asleep as Taylor pours him a glass of wine. They sit down for dinner and talk about Jack's christening. Taylor doesn't feel comfortable having Bridget as the godmother after she didn't come forward about the egg mix-up. Nick tells her Bridget will understand. Taylor still doesn't understand about the mix-up and asks Nick if he knows more about it. He confesses that Brooke was tested to see if she could have a baby and Taylor realizes Brooke was trying to win him back by giving him the one thing she couldn't, a child.

Taylor gets up, paces the living room and is upset that Brooke was scheming behind her back to break them up. Nick tells her he turned Brooke down; he wanted a kid but he wanted her more. He tells her it doesn't matter anymore and she tells him it does because they are living in a house with the baby Brooke desperately wanted with him upstairs and she had to carry it.

Nick asks Taylor to calm down and she tells him she needs her head examined. Taylor believes that Brooke and Bridget were in cahoots and Brooke used Bridget to switch the eggs on purpose to have a baby with Nick. Nick tells her it was an accident but Taylor won't be swayed. She believes Brooke is messing with her mind; that when things don't work with Brooke and Ridge again, she'll come running to Nick and use the baby to take him away. Nick asks her to be patient, calm and committed and Taylor wants to know how she is expected to do that when Brooke's biology is upstairs in the nursery. She slams her hands down on the table, yells that she hates Brooke and sits down at the table crying. Nick walks over, kneels by her and tells her it's their home, their life, their baby and marriage; he is her husband and his life would mean nothing without her in it.

At the county jail, Stephen is comforting Donna. He tells her he'll confess to the shooting and she can stay with Eric. She reminds him he doesn't like Eric but he tells her that he loves her. They both realize that even if Stephen confessed, Stephanie could come forward and they'd all get in trouble for obstruction of justice. Donna doesn't want to see Storm go to jail, but she doesn't want to give up Eric. She starts crying and asks, "Daddy, what do I do?"

Stephen hugs Donna and she tells him that Eric proposed. She worries about breaking it off with him knowing what his fate will be if he returns to Stephanie. She knows Storm could go to prison, but that Eric would be in a worse prison. The guard comes to get Stephen and he tells her to follow her heart as there is no right or wrong. After he's lead out of the room, Donna calls Stephanie and tells her she's on her way over.

Donna walks into the Mansion and Stephanie offers her tea or something stronger but then cuts to the chase. She tells Donna she has to make sure Eric knows it's completely over between them and both of their families will remain intact. Donna tells her she hasn't agreed to her blackmail yet and Stephanie tells her it's not blackmail, it's "quid pro quo". Donna tells her that Eric was the walking dead when they first got together; that being married to her sucked the very soul out of him but she put it back in him. She tells Stephanie she loves Eric too much to send him back to her so she can shove her "quid pro quo" and there is nothing she can do about it. Stephanie turns and looks as Donna glares at her.

At Stephanie's Donna proclaimed to Stephanie that she would not break up with Eric. Stephanie continued to blackmail Donna with her threat to inform the police that Storm shot her. Donna explained to Stephanie that Eric no longer loves her.

Meanwhile, Eric visited Brooke. Brooke told Eric that Donna loves him more than anything and wants to marry him. Brooke, however, tried to convince Eric to keep things between him and Donna the same and not rush into marriage. Brooke did not let on to Eric that Stephanie is blackmailing Donna into ending their relationship.

At home, Taylor struggled with her hatred of Brooke and the fact that Brooke is Jack's biological mother. Taylor expressed to Nick that Brooke now has the one thing she wanted-a baby with Nick. Nick was extraordinarily supportive with Taylor. Nick told Taylor that it did not matter to him what Brooke wanted because he loves Taylor. While alone downstairs, Taylor contemplated drinking some wine.

Back at Stephanie's, Donna finally gave in to Stephanie's blackmail threats. Donna agreed to end her relationship with Eric in exchange for her father's freedom and the omission of the fact that Storm shot Stephanie. Donna became extremely emotional and told Stephanie that she hated to hand over Eric to her because she knows that Eric will be miserable with her. Donna's heart broke because she knew that she faced ending her relationship with Eric. Donna knew that Eric would never believe her unless the break up is a very cruel one.

Donna walks into the house and informs Brooke she agreed to Stephanie's condition. Donna tells her Storm must never know as he'd never let her agree to it. She cries over losing the happiness she's waited so long to find as Brooke consoles her and tells her she'll find someone else.

Storm walks in and inquires if Stephen is being released and Brooke tells him not yet. He is apprehensive of Stephanie's motives for helping them and wants to go talk to her but Brooke blurts out "No". She explains her outburst by saying she just wants to keep things smooth.

Storm feels Brooke is acting funny and wants to know what is going on. He asks why she wanted to talk with Donna alone after Stephanie left. Brooke lies and tells Storm that Eric and Donna have hit a rough patch. Storm assumes it's over the shooting and hopes things work out because he knows how much Donna loves Eric. He feels like it's all his fault and Brooke tells him that his family will support him. She tells him that he has a lot of rage inside him and he needs to get help. He hugs her and says he is happy to have his family and believes they would do anything for him. With tears in her eyes, Brooke tells him that, yes, they would.

Katie shows up at Forrester Mansion and mentions Stephanie isn't surprised to see her. Stephanie laughs and remind her that she's a Logan; she's either there to berate her or ask her for something. As she walks into the living room, Katie smiles and lets her know she's there to thank her for offering the deal to her family. She mentions Donna hasn't been home since the night before and that maybe she has changed her mind. Stephanie says that even Donna wouldn't let her own brother go to prison.

Katie tells Stephanie how Donna has waited a long time to find her knight in shining armor. Stephanie feels she chose the wrong knight as he happens to be married to her. Katie lets Stephanie know that her actions against her family have been reprehensible and she has not changed at all. Stephanie laughs and tells her she has changed as she's not the same person who used to interfere with Brooke and Ridge's relationship. Katie tells her it's because she's moved on to Eric and Donna. Stephanie admits she just wants her husband back so she can spend the rest of her days with the man she loves, her children and grandchildren.

Katie tells Stephanie that she is blackmailing her family and Stephanie reminds her that Brooke came to her. Katie tells her it's only altruism if you don't expect anything in return. Stephanie tells her that she is the one who came up with the solution for the whole mess and Katie says that changing tactics isn't the kind of changes she was talking about. Stephanie feels that being shot has made her reevaluate her values and priorities. Katie apologizes to her for what Storm did. Stephanie feels he'll get the help he needs now thanks to her but Katie tells her it's because of Donna.

Stephanie mentions that Donna and Eric are at Big Bear and she hasn't heard from either of them. Katie wonders if Stephanie is okay with taking back a man who is in love with someone else. Stephanie tells her she's been through it before. She asks Stephanie what she would do if Donna told Eric she was blackmailing them and Stephanie says she won't tell him or Storm will go to prison.

Donna walks into Big Bear cabin and Eric greets her with mulled wine. He removes her coat and tells her he had her favorite meal prepared for dinner. Donna feels overwhelmed when she sees the candles, wine, meal and gifts on the table. She opens one box and reveals a white parka with ski lift tickets and snowboarding lessons for two. Eric admits he made the parka for her and tells her the rest of her winter wardrobe is hanging in the closet. He feels like trying things that he's never done before and jokes about getting cuts and bruises but that nothing can hurt him as long as he can be with the woman he loves. As they hug, she looks over his shoulder; struggling to hold back tears.

Donna tries to talk to Eric but stops when she hears her car start and assumes someone's stealing it. Eric laughs as he holds up a set of keys and tells her he bought her a new hybrid SUV; all loaded with anything they might need for their next adventure. Donna thanks him but feels they won't have enough time to do all he wants due to his work and family. He tells her work used to be his sanctuary but he doesn't need that escape anymore; she is his escape.

Eric has changed his mind, he doesn't want to elope, but would rather have a lavish affair as big as the changes Donna has inspired in him. He gets down on one knee and opens a jewelry box with a huge diamond ring. Donna is speechless as she admires the ring. As Eric goes to slip the ring on her finger, she withdraws her hand and tells him no and gets up. Eric thinks it's because of the ring, that's it's too ostentatious but he wants her to wear it with pride, as he slips the ring onto her finger. They hug and Donna remembers her conversation with Stephanie and she cries out "no, no, no" and withdraws from Eric. With concern on his face, he realizes something is wrong and demands to know what it is.

At the police station, both the Bakers are in disbelief as Stephanie claims it wasn't Stephen who shot her, and she won't testify against him. The Bakers say they will talk to the DA, and both tell Stephanie she can't change her mind. She says she is positive that Stephen didn't shoot her and she is sure he would pass a lie detector test if he took one. Brooke shows up at the station as Stephen is released. Stephen and Brooke return to Brooke's home where he promises things will be different. He heads upstairs for a shower while Brooke takes a call from Steph trying to ensure Brooke knows Donna must end it with Eric at Big Bear. She wants Donna to send Eric home to Steph so that she can put her family back together, starting with her husband.

In the cabin at Big Bear, Eric wants to know why Donna is so upset and so distraught at his marriage proposal. Donna weaves a wacky tale of how she is a sex addict and doesn't deserve Eric. She calls herself a slut just as Stephanie does, and claims there is no hope for her. Eric, looking both hurt and shocked, wonders why she waited until this moment to reveal it. He tells Donna he won't let her go. They will work through this problem with counseling, and they will be married. Donna is stunned and tells Eric how much she loves him. Her phone rings, and Donna steps out into the snow to take the call. It's Stephanie calling to make sure she keeps her end of the bargain, or Steph warns she'll call Baker and tell him Storm shot her. Donna begs for more time or another way out of this, but Steph tells her to leave Eric now. Donna hangs up and looks sorrowfully at Eric.

Stephanie answers a knock on her door and it's Bridget. She walks in and notices Stephanie's packed suitcase and Stephanie tells her she's going to visit Pam and Ann as Ann is sick. Bridget asks what made Stephanie change her mind about who shot her. Stephanie tells her it was like a piece of her memory came back and she knew it wasn't Stephen who shot her. Bridget tells her she read something about it and sometimes the memory comes back in full. Stephanie smirks and says "Maybe it will."

The Logans have gathered in Brooke's living room and Storm informs them that officially all charges have been dropped against Stephen. Stephen acknowledges his responsibility in leaving the family and Storm becoming a father to the girls when he was just a kid himself. Stephen wants to take Storm out of the country when he leaves so Storm can get the help he needs.

Storm wants to go over and thank Stephanie for freeing Stephen and not pressing charges against him. He feels that it was big of her to not ask for anything in return, as each of his family members look away uncomfortably. Stephen tells him some things are better left alone and Katie agrees with him. Donna's phone rings and she takes it outside. It's Stephanie calling to tell her she had better end things with her husband or she'll tell the police about Storm.

Storm has gone outside and Stephen talks with the girls about getting Storm away. He tells Donna what she has done inspires him so he is going to search for Beth to see if they can have a fresh start. Storm walks in and tells Stephen the bags are packed and the car is there. Storm hugs Donna and tells her not to cry, that he and Stephen will work out a few issues but they'll be back. As they all hug, Stephen says, "We're a family right now. We're the Logans and we're stronger than we've ever been."

Donna is alone in the living room, remembering her conversation with Eric. She starts to head upstairs and the doorbell rings; it's Stephanie. Walking in, Stephanie informs Donna she is aware Stephen and Storm are on their way to Europe and that there is no place they can go that she won't find Storm if Donna doesn't follow through on her end. Donna tells her that she tried to break it off but that Eric loves her. She tells Stephanie that she told Eric she had a sexual addiction. Stephanie laughs and asks if it's true. Donna tells her Eric feels they can work through it. Stephanie tells Donna she is leaving for Chicago and she had better have ended it by the time she turns or Storm will spend the next 10 years in prison. She slams out the door as Donna looks away, upset.

Taylor's drinking coffee as Nick comes down the stairs. He lets her know that Stephen is a free man and how Brooke and her family must be thrilled. Taylor turns around and wants to know why the first thing out of his mouth is "Brooke Logan" as he knows how much she hates that name and it's not like she cares. Nick apologies but Taylor tells him she's tired of "Brooke this, Brooke that" and she can't even stare at the baby any longer without Brooke staring back at her.

Jackie lets herself into Nick's house and Nick asks her to knock next time. She starts to show them clothes she bought for the baby and senses the tension so she goes upstairs to see Jack. When she leaves the room, Nick offers to take Taylor to Insomnia to get some coffee and a muffin but Taylor tells him she has a file to work on so he should go anyway.

Jackie comes down and sees Taylor is feeling better. She convinces Taylor to join Nick at Insomnia while she watches Jack. Taylor thinks it's a good idea so she goes upstairs to change her clothes.

Brooke walks into Insomnia and sees Nick. After a brief conversation about Stephen, Nick invites Brooke to join him. They sit at a table and Brooke asks how he is. Nick lets her know that Taylor has been a little weird lately and she can't get over the fact that Brooke is Jack's mother. Brooke offers to talk to her but Nick tells her no, that her best bet is to stay away as she is the target of Taylor's anger. He also tells her about Taylor's belief that Brooke and Bridget conspired to implant her with Brooke's eggs so that she was the baby's mother. Brooke gasps in shock. Nick believes Taylor is a strong woman and will get past it but tells Brooke she needs to stay away. Brooke asks if Taylor is alone and Nick wants to know what kind of question that is as Taylor is Jack's mother. She tells him it's all about Taylor's state of mind and they have to be careful. Nick tells her this is all new to him and he's learning as he goes. Brooke is worried about him as he is going through this alone and doesn't have anyone to talk to so she wants to know if he'll talk to her.

Brooke puts her hand on Nick's and asks if Jackie knows she's Jack's biological mother. After he tells her no, she encourages him to let Jackie know so she can help him. Nick tells Brooke how much he loves his son and just wishes Taylor loved him as much. He talks about the things Taylor says about Brooke and Jack and how he wants to fix it and make it right but doesn't know how. Brooke rubs Nick's hand and tells him that she thinks Taylor is going to need some professional help.

The door opens and Taylor walks into Insomnia and sees Nick and Brooke together, just as Nick squeezes Brooke's hand. Brooke tells Nick that she is worried Taylor could snap and Nick tells her that what would make her snap is if Taylor found the two of them together like that and it would be ugly, very ugly. With an angry look on her face, Taylor watches the two of them together.