Brooke can't stand it as Bridget goes off about how happy Ridge must be. Brooke breaks down crying, about to reveal to Bridget what happened between her and Nick. In agony, Brooke reveals that she was with Nick in South America. Bridget refuses to believe it. Brooke says that she knew that it was a mistake and Nick could be the father of the baby. Bridget is dumbfounded and questions Brooke's respect for Ridge, since she had sex with his brother just after his supposed death. Brooke emphasizes that it wasn't about sex. She recounts their feelings of sadness and how she and Nick ended up at the foundry, and needed something to stop the pain. Brooke tells Bridget that she'll tell Ridge tonight, so there won't be any need for a baby shower. Brooke fears that Bridget thinks she's a horrible, unfaithful person. Bridget tells her it's not true and gives her a comforting hug. Bridget looks Brooke in the eye and tells her that she's going to tell Ridge the truth and that he'll forgive her. Brooke exits. Ridge asks Nick to be the baby's godfather. Nick tells Ridge he's the wrong guy to be a godfather. Nick says that a godfather is a moral role model, which he's not. Ridge praises Nick for taking care of Brooke, saying he should get a medal for what he did. Nick tells Ridge to get off his boat and leave him alone. Ridge asks Nick why he's so upset, then apologizes for putting him in a difficult position and throwing his happiness with Brooke in Nick's face. Nick tells him to hold onto what he has with Brooke, no matter what. Nick gives him a heartfelt goodbye. Ridge exits. Bridget arrives at Nick's boat. Bridget reveals that she talked to Brooke. Bridget yells at Nick for what he's done. Ridge and Brooke are at dinner. Ridge asks about Brooke's surprise. Ridge tells her to have a seat and they'll talk about it over dinner. Brooke tells him the news can't wait -- she has to tell him something she did that she's not proud of. Eric flatters Deacon, complimenting him on getting Amber as head designer and his good work at Forrester. Deacon tells them that he's going for a more urban feel and that he wants a rap star to promote his clothes. Eric is clueless, but this actually charms Deacon. Eric tells Deacon he'll be a success. Eric and Thorne tell Deacon that he'll have a great business in five years. Eric tells Deacon that it might be sooner if he can find help from an established company. Eric considers it, then tells him that their companies are too different. Deacon exits. Thorne questions Eric's rationale. Eric tells him that he left Deacon wanting more, so soon he'll be begging to hand over his 2%.
At Las Olas, Sally told Jackie of her plans to blackmail Brooke. Sally explained that either she will force Brooke to give back her company or she will inform Ridge that Nick and Brooke made love just after they learned that Ridge was dead.
Bridget went to Nick's boat to both question and criticize him for his behavior at the foundry. Nick tried to set Bridget straight about what happened. Nick explained that he thought Brooke was about to kill herself out of grief when she thought Ridge was dead. Nick also emphasized that he and Brooke were both grieving over Ridge and not in their right minds. Nick honestly admitted to Bridget that he and Brooke do not know how they ended up making love. Jackie arrived and informed them that Sally is planning to blackmail Brooke.
At the private dining room, Ridge told Brooke that he really preferred not to discuss anything heavy, he just wanted to enjoy the evening with her. Brooke was determined to tell Ridge about what happened after she thought he was dead. Brooke told Ridge the story of Nick's finding her at the foundry ready to kill herself. She explained that in their deep grief over the loss of Ridge, they somehow made love. Ridge was shocked and angered to learn that Nick and Brooke had made love.
Ridge realizes what Brooke is trying to tell him. Ridge is angry with Nick for taking advantage of her in her grief. Brooke assures Ridge that it wasn't like that. She asks him to try to understand. Ridge insists that Nick was putting the moves on Brooke, but Brooke wasn't able to see that. Ridge realizes that the baby could be Nick's. Ridge, hurt, tells Brooke that he thought they would finally be able to build a life. Brooke begs him to forgive her, promising that they can still have their life together. She's sure in her heart that the baby is Ridge's. Ridge leaves.
Eric explains to Stephanie how he plans on financing Deacon's new fashion company and making it a subsidiary of Forrester. In exchange, Eric will get Deacon's shares of Forrester. Eric is sure that Deacon's company will fail. He tells Stephanie that he saw Bridget with Deacon, and he wants Deacon out of the family's lives.
While Bridget is studying, Deacon comes by to tell her about a meeting he had with Eric. While he is there, Eric phone Deacon to tell him that he has drawn up a proposal to help Deacon with his new business. Deacon is excited and hugs Bridget before going to meet with Eric. At home, Eric tells Stephanie that they are on their way to getting Deacon out of their lives for good.
Jackie and Nick discuss Brooke's situation. Nick hopes that Ridge will forgive Brooke. Nick blames himself for putting everyone in the position they are all in. Jackie suggests that Nick leave town in case Ridge is angry with him. Nick tells Jackie to leave.
Jackie goes to check on Brooke and finds her alone. Brooke explains that Ridge left and isn't coming back. When Jackie realizes that Ridge may be heading for Nick's boat, she insists that they must stop Ridge.
Ridge goes to see Nick. The two brothers stand face-to-face.
Eric assures Stephanie that after tonight, Deacon will be out of their business and out of their lives forever. He knows that he needs to play his cards carefully to convince Deacon to sign the contract without reading the fine print. Bridget admits she's surprised, but pleased that her father now appears to believe in Deacon. Later, she is horrified when she hears Thorne and Stephanie discussing Eric's deception and rushes out. Stephanie calls Eric to warn him that Bridget knows what's going on. Eric lays out the deal and pressures him to accept the terms. Bridget bursts in and orders Deacon not to sign, but it is too late. Brooke explains to Jackie that even if Ridge can forgive her, she's afraid he'll never be able to forgive Nick. Nick assures Ridge that the whole thing was his fault. Brooke didn't betray Ridge, Nick did. Ridge accuses Nick of taking advantage of Brooke's grief. Ridge appears to be about to deck Nick, but he shoves him against the wall and tells him that he ruined everything. Ridge says that Nick better pray that the baby is Ridge's. When Ridge comes home, Brooke apologizes. Ridge reveals to her that he knows what he has to do.
Brooke is fearful that Ridge will make a hasty decision about their future, but Ridge surprises her when he tells her that, for the time being, they should forget that anything happened between Brooke and Nick. He tells Brooke that he understands that she was vulnerable and he believes that Nick took advantage of her at the foundry. Brooke tries to defend Nick's actions, telling Ridge that Nick was also grieving and not in his right mind, but Ridge doesn't want to hear it. As far as he is concerned, the entire blame lies with Nick. Ridge professes his love for Brooke, saying that he believes that they will get through this, but it will be their greatest challenge yet, especially if the baby turns out to be Nick's. Brooke quickly dismisses the possibility and insists that she is sure the baby is Ridge's.
Bridget tells Deacon that Eric's offer is a deception meant to rob him of his Forrester stock and that Eric has no intention of allowing Deacon's company to succeed. Deacon tells Eric that they have a binding contract and Eric agrees. Deacon will get exactly what was promised to him- nothing! Bridget is shocked and angry that Eric would trick Deacon this way after what he's been through in losing Macy, insisting that Deacon has changed. Eric is equally appalled that Bridget would defend a man that has brought nothing but pain and destruction to her and the entire family. When Bridget continues to argue Deacon's virtues, Deacon tells her not to waste her time since Eric isn't listening anyway. He ads before leaving that Eric will be hearing from his attorney. Once Deacon is gone, Bridget, angry and tearful, rakes her father for deceiving her, claiming that she obviously doesn't know him at all.
Jackie tries to sooth Nick's guilt over the situation with Brooke and Ridge. But Nick, who's been drinking, cannot be consoled. Jackie points out that there may be a silver lining to all of this if the baby is his and wants Nick to see that it could mean a chance for Brooke and Nick to have a future together. She knows that Nick loves Brooke and that he also deserves happiness, but Nick tells her that if the baby is his, it will mean the destruction of their family.