Stephanie rejects Brooke's perjury demand as 'reparation', claiming it wouldn't work and Storm can't be trusted never to have another criminal episode of lost self-control. Hearing Brooke's report, Storm leaves to report to the police before Stephanie would in a few hours. Eric brings his divorce papers to shock-shelled Stephanie, who now changes her mind and calls Brooke to stop Storm 'we can help each-other'.
Eric treats Donna to a romantic private dinner, followed by a private fashion show presenting her new honeymoon wardrobe, to her delight culminating in a formal proposal to marriage. Meanwhile Stephanie arrives at Brooke's to propose her terms to get Storm and dad Steve off the hook for shooting her: Donna must renounce marrying Eric to prevent a divorce. Storm has already started making a confession to the LAPD, but a call makes them return without disclosing the real killer.
Eric scolds Felicia's inconsiderate assumption he would and should return to her ma anyway. Donna vigorously reasons against Brooke's suggestion to accept Stephanie's offer to drop the complaint if she doesn't marry Eric. In jail, Steven gets Stephanie's advice to finally reunite his family by pushing Dona to accept the deal.
Brooke keeps pressing Donna to give up Eric, but dad wants to 'confess' and save only Storm instead. Taylor's belligerent attitude against Bridget, whom she bans from the christening and completely blames for the IVF mix-up, worries Nick again. Donna delivers her answer in person.
Nick's attempts to appease Taylor's insecurity about Brooke and motherhood fail again. Donna rages on about her and Eric belonging together and nobody wanting him to be stopped from remarrying, but when Stephanie actually picks up the horn to call the police gives to the blackmail.
Brooke is relieved to hear Donna yielded to Stephanie's ultimatum. Stormis suspicious why he's let off the hook. Unsuspecting Eric showers Donna with gifts and kindness in the Big Bear cabin and promises an unprecedented wedding extravaganza, yet she interrupts him in tears.
Eric remains most loving and supportive when Donna tries to gently wriggle out of accepting his proposal by claiming she suffers from an incurable sex addiction. Stephanie doesn't actually wait for news from Big Bear but forces the LAPD to accept her declaration that Steven isn't her shooter, so the formal charge against him will be dropped.
The Logan family rejoices after the charges against Stephen Logan have been dropped. Not only that, but Stephanie has agreed not to tell the police who the real shooter was: Storm. Storm thinks she is doing it out of the kindness of her heart; but he doesn't know Stephanie very well. She is getting something in return, namely Donna's word that she'll break up with Eric. In fact, Stephanie confronts Donna over why she hasn't broken things off yet. Donna tells her she has tried. In fact, she told Eric that she was a sex addict, but he still wouldn't agree to break up with her. Stephanie laughs contemptuously and tells Donna their relationship had better be over by the time she gets back from Chicago. Later, Brooke happens to run into Nick at Insomnia.
Brooke tries to convince Nick that Taylor needs psychiatric evaluation. Later, Brooke and Taylor happen to meet at Insomnia. Brooke tries to be friendly, but Taylor confronts her over whether she is trying to steal Nick and whether the fertility clinic mix-up was in fact a conspiracy between Brooke and Bridget. Taylor becomes more enraged and then begins to hyperventilate. Meanwhile, Nick explains to his mother that Brooke's eggs were implanted into Taylor by mistake. Brooke, in other words, is the biological mother of Jack. Jackie is shocked, but she believes the error was meant to happen: Nick should be with Brooke, not Taylor.
After Taylor suffers a panic attack and faints in Brooke's arms at the Insomnia café, Brooke tries to get her to go to the hospital. Taylor refuses, but Brooke insists on bringing her home. Nick and Jackie are there when Brooke brings Taylor inside. They're dismayed to hear what has happened. To Jackie, this is just further confirmation that Nick should leave Taylor for Brooke. Taylor, she says, is incapable of raising baby Jack. Meanwhile, Brooke returns home to find that Ridge has planned a romantic evening for the two of them. He wants to celebrate the fact that Stephen Logan (Brooke's father) is no longer a suspect in his mother's shooting. That sort of thing, he says, can put a strain on a relationship
Taylor and Nick make love, and all seems well for now. But Jackie believes that no happiness can last between her son and Taylor, now that it turns out Brooke was the egg donor for Jack. She tries to convince Brooke to be a mother to Jack and a husband to her already-married son. Meanwhile, Ashley and Ridge discuss baby Jack. "As your friend," she says, "I hope you and Brooke can find true happiness. But I have to admit, as your ex-lover, part of me hopes that you don't.
Nick takes note that Taylor seems revitalized and suggests to her that maybe her panic attack of the previous day was a good thing: it brought some ugly things to the surface so that she could deal with them. Later, Brooke pays Taylor an unwanted visit and discovers that she has poured vodka into her coffee. Brooke takes baby Jack and rushes out of the house. Elsewhere, Donna tells Katie that she tried to break things up with Eric but couldn't. Donna explains her tactic: she told Eric she was a sex addict. Donna expresses how touched she was that Eric forgave her; but Katie suggests that perhaps a woman's sex addiction is not a turn-off for a man. Katie comes up with a plan. She stages it so that Eric will catch Donna and Jake Maclaine in a compromising position.
As Jackie tries to convince Nick he should be with Brooke, Brooke rushes in with baby Jack. She took him away from Taylor, whom she suspected of drinking. Taylor arrives soon after, furious over what Brooke did. She admits that she poured something in her coffee but she didn't drink it; she hasn't been drinking at all. Elsewhere, Eric catches Donna in a compromising position with Jake Maclaine. She tells him again that she has a sex addiction and can't help herself. But Eric insists on forgiving her, and she can't bring herself to break things off with him, despite Stephanie's blackmail threats.
Nick tells Taylor that pouring a drink when she is alone with their newborn child has crossed a line. He tells her that he is trying to be as sensitive to her as he can; but he feels as if he is losing her. Taylor demands to know if Nick wants her to leave him. Nick responds that he is committed to their marriage. What he needs to know is: can Taylor love Jack, even though he has Brooke's DNA? Meanwhile, Jackie tells Bridget that the mix-up in the lab wasn't a coincidence or some terrible mistake. Rather, it is the Universe's way of bringing Nick and Brooke together. Elsewhere, Ridge takes a dimmer view of the mix-up and tells Brooke she can't think of Jack as her son. Also: Eric reassures Donna that she can get help for her supposed sex addiction.
Jackie walks in on Taylor as she is in the process of doing some housecleaning. She finds Massimo's old ties, "Stephanie's Academy Award" and more junk. But Taylor's real purpose is to find anything related to Brooke and get rid of it. Jackie reminds Taylor that Nick and Brooke never lived in that house. If Taylor feels Brooke's presence it's all in her own mind. Later, Rick stops by with a Christmas present. Rick meets baby Jack and calls him the "spitting image" of his mother, little guessing about the egg donor mix-up. Taylor immediately imagines that she sees Brooke in the room and then has a panic attack in front of Rick. After she calms down, she tells Rick that a mix-up in the fertility lab resulted in Brooke becoming the egg donor for Jack. Meanwhile, Bridget catches Brooke and Nick in a coffee shop holding hands. She confronts them, and they claim they were just talking.
Rick continues to interrogate Brooke and Bridget over Taylor's revelation that Brooke is the egg donor for baby Jack, meaning that both Brooke and Taylor are the boy's biological mothers. The news confirms for him that Brooke and Nick should be together, not Brooke and Ridge. He tries to convince Brooke of it. Later, he tries to convince Nick, too. Meanwhile, Rick's news that he saw Taylor in a state of hysteria prompts Brooke to send a text message to Nick. But Taylor sees it and later confronts Brooke over it.
Taylor tries to compose herself after throwing heated accusations against Brooke. She assures Brooke that she will now focus on Jack. Meanwhile, Nick ignores his mother's pleas to reunite with Brooke because the situation will continue to be very difficult for Taylor. Later, Taylor returns home and the women (she and Jackie) have an argument about Brooke. Nick brings Brooke the photos of the two of them with Hope and R.J., explaining how Taylor found them. Brooke assures Nick that Taylor will keep it together. Alone in her bedroom, Taylor flashes back to all her recent encounters with Brooke. Still haunted by visions of her nemesis with Jack and Nick, she is desperately screaming for Brooke to go away. Then, Taylor sees a bottle of vodka and takes a deep swig.
Katie is appalled when Donna suggests that they call Stephanie's bluff. Katie counters that Storm's sisters need to do whatever it takes to keep Storm out of prison. And if that means Donna sacrificing her relationship with Eric, so be it. Elsewhere, Taylor seems to have made a complete turnaround, but Nick worries it's too good to be true.
As per Nick's request, James Warwick is in town. Nick fills him in on what is going on with Taylor. But Nick doesn't know everything. Rick pays Taylor a visit and catches her drinking. Elsewhere, Stephanie confronts Donna over the fact that she and Eric haven't split apart yet. Stephanie again threatens to turn Storm over to the police if Donna doesn't break things off and break them off quick.
Donna tells Eric that Storm was the one who shot Stephanie. She also tells him that Stephanie is blackmailing her to stay away from him, or else she'll turn Storm over to the police. At first, Eric is appalled that Storm had shot his wife. But then he is even more outraged that Stephanie would blackmail Donna. He hits upon an idea. He'll fool Stephanie into thinking he has broken it off with Donna; thus it will seem Donna is keeping her end of the bargain, and Stephanie will not put Storm behind bars. Elsewhere, James Warwick, Taylor's colleague, pays Taylor a visit at Nick's request.
Donna tells Katie what she did. Instead of breaking things off with Eric, she told Eric the truth. She told him that Stephanie is blackmailing her to stay away from him. Katie is horrified. This means that Stephanie is going to turn Storm over to the police. But Donna tells her that Eric plans to fool Stephanie. He'll tell her that he's broken off with Donna and wants to come back to her. Katie scoffs, knowing that Stephanie is no fool. Later, Eric calls Donna on his disposable phone and tells her his ruse worked. Stephanie believes that Eric wants her back. Elsewhere, Taylor lashes out at Rick, suspecting that he wants to sabotage her marriage to Nick in order to get Nick and Brooke together (thus breaking Ridge and Brooke apart). Later, Taylor surprises Nick with the idea of a dinner party for Ridge and Brooke. But it seems she has a hidden agenda.
Ashley pays Taylor a visit and learns that Taylor has planned a dinner party for Brooke and Ridge. Ashley is taken aback. Rick is also surprised when Ashley tells him about it. What Brooke, Ridge and even Nick don't know is that Taylor has a hidden agenda for the party. Their first clue to what Taylor has in store comes in the form of Taylor's third guest: a minister.
Taylor springs a shocker on Brooke and Ridge when they come over for her dinner party. Nick is taken aback as well. Taylor invited a minister in order to marry the two of them right then and there. Brooke is furious, but Ridge thinks the idea is a good one. Brooke tells Ridge in private that Taylor is only doing this because she believes Brooke is a threat to her own marriage. Elsewhere, Ashley surprises Rick by telling him that she would like to get back together with him. Rick tells her he is a bit gun shy after she dumped him for Ridge. Ashley reminds him that he once dumped her for Phoebe. Rick tells her he would like time to think about it.
Brooke resists Taylor's ploy and refuses to get married to Ridge on the spot. Everyone begins to suspect Taylor is unhinged. Meanwhile, Jackie pays Stephanie an unwanted visit and shocks her with the news: Brooke is the egg-donor for baby Jack. Both Brooke and Taylor are the baby's biological mothers. Stephanie refuses to believe it until Bridget stops by and confirms the story. Bridget's mother is also the mother of baby Jack; and Bridget was the one who caused the mix-up in the lab.
Brooke visits Donna and learns to her dismay that Eric is with her. It seems Donna and Eric are still seeing each other, which spells trouble for Storm. Donna promised Stephanie she would stay away from Eric; in exchange, Stephanie would not turn Storm over to the police. Donna and Eric promise Brooke that they will be careful and that Stephanie will never find out what they are up to. Later, Brooke must tangle with Stephanie over another matter. Stephanie, despite her promise to support Brooke after the rape incident, is now trying to discourage her relationship with Ridge. And it's all because of what she now knows about Nick, Taylor and baby Jack. Meanwhile, Nick asks Dr. Warwick what he can do to help his wife, Taylor, who seems to be losing her mind. Warwick gives him a surprising answer.
Dr. Warwick tells Nick he can't make a breakthrough with Taylor until he knows the truth. Is Nick still in love with Brooke? Nick goes to the marina to clear his head and do a little soul-searching in order to learn the truth. Later, Warwick tells Taylor what he asked Nick. Taylor begins to hallucinate. She sees Taylor walking into her house and declare that Nick is now hers. Meanwhile, Stephanie confronts Brooke, demanding to know if she is still in love with Nick. Brooke resists being baited. Later, she finds Nick at the marina.
Nick tells Brooke that he still loves her, but she is relieved when he adds that he is still committed to his marriage with Taylor. But then he appalls her by stating his intention to tell Taylor how he feels about Brooke. Meanwhile, Brooke is the subject of Taylor's hallucination. The Brooke in her mind taunts her over the fact that she stole Ridge from her and declares that she'll steal Nick and her baby as well. Dr. Warwick does his best to help Taylor through her mental crisis. Elsewhere, Rick confides in his sister, Bridget, about his concerns for Taylor's well-being. Bridget, for her part, is worried that her friendship with Taylor is forever ruined, thanks to her mistake in the lab that caused Brooke's egg to be implanted in Taylor's womb, resulting in baby Jack, the son of both Brooke and Taylor
Taylor confronts Nick and demands to know if he still has feelings for Brooke. Nick reluctantly admits that he still loves her; but he tells her he doesn't want to end the marriage. He says he loves Brooke, but she is not on his mind. That's not good enough. Taylor says she is leaving him, and she does. Nick immediately calls Brooke and tells her the news. Brooke comes straight over. Meanwhile, Rick, who heard the news when his mother did, goes straight to Taylor to comfort her, and perhaps do more than comfort her. Taylor is terribly upset and pours out her heart to Rick.