At Forrester Creations, Taylor shows up and Nick greets her with a kiss. He apologizes for Jackie's intrusion the night before and Taylor says not to worry about it she just wishes Jackie wouldn't keep trying to get him back together with Brooke. Nick grabs Taylor close to him and tells her she has nothing to worry about. Things start to get hot and heavy until they get interrupted by a call reminding Nick of his important lunch appointment. Before Taylor leaves Nick jokes that they should send their ex's a thank you note because they wouldn't be together if Ridge and Brooke hadn't dumped both of them.
At Forrester Originals, in Eric's office Phoebe and Rick work on the guest list for the wedding as Ridge nervously watches on. Annoyed, Phoebe tells her father he will get more work done in his own office and he reluctantly leaves, so he can prove his trust in her. After he leaves, Phoebe complains to Rick about their situation and fears that he will lose interest in her if things don't improve soon. Rick tries to assure her that she has nothing to worry about and that he is still crazy about her. Unconvinced, Phoebe doesn't think time is on their side or that distance will bring them closer. She recalls how crazy her parents used to be about each other's, but points out that now they don't even seem to remember that time. Phoebe tells Rick she wants what they have to get stronger. Then she begins unbuttoning his shirt arguing that she can protect her own innocence and everyone else needs to stay out of it. Once she gets his shirt off she tells him how sexy he is and playfully convinces him to let her cut his hair. A little nervous, Rick agrees but asks her to hide the scissors if Ridge walks in.
Meanwhile at Nick's, Donna and Jackie plot on how to split Ridge and Brooke up. Jackie wants to make sure Ridge catches Phoebe and Rick in a compromising position, however Donna wants to keep her hands clean and just let nature take its course. Jackie argues that leaving it to chance is too risky and that they must come up with a plan. Before they can discuss it further Nick walks in and Donna heads back to the office. When he is alone with his mother Nick scolds her for trying to sabotage his relationship with Taylor. Jackie maintains that he would drop Taylor like a hot potato if Brooke were free. Nick denies that he would and tells Jackie he is not interested in sharing Brooke with Ridge any longer. Jackie believes he won't have to share her if they break up this time.
Back at Forrester Originals, in Ridge's office, Taylor walks in looking for Phoebe because they have lunch plans. Ridge tells her he is worried because he left Phoebe alone with Rick in Eric's office. Taylor is proud of him for showing Phoebe that he trusts her. Ridge admits that he has his doubts and tries to persuade Taylor to quietly check and see if they locked the door. Taylor refuses to spy on her daughter and she and Ridge decide to wait patiently and hope Phoebe comes out soon. Noticing that she's in disarray, Ridge comments that Taylor looks like she just rolled out of bed and she admits she had a little office play with Nick. Not reassured by this confession. Ridge decides that they should go check on Phoebe. When they hear nothing from outside Eric's office, Ridge becomes more suspicious. He bursts in and is shocked by what he sees.
Ridge and Taylor walked into Eric's office and found Phoebe sitting on top of Rick. They saw that Rick had his shirt off. Ridge and Taylor were furious with Rick and Phoebe. Phoebe had to restrain Ridge from charging at Rick. Ridge told Phoebe that she was fired from Forrester Originals because they could not trust her around Rick. Ridge changed his mind after Taylor prodded him and told Phoebe she could retain her job.
Ashley told Stephanie that she accepted the job offer to develop a fragrance for Forrester Originals. Stephanie had hoped that their family problems would not turn Ashley off from working there. Ashley advised that perhaps Phoebe and Rick's infatuation with one another would just pass. Stephanie advised that for other people that might be true but they both belong to the same family and would be in one another‘s lives forever.
Ashley received a phone call from her sister, Tracey in New York. Tracey expressed concern over Ashley and thought perhaps Ashley's move to LA was over the death of their father. Ashley admitted that she is still in grieving, but the move to LA did not have to do with their father's death. Ashley assured Tracey that she is okay and that she and Abbey are adjusting nicely to the LA lifestyle. Later, Rick confided in Ashley over his relationship with Phoebe. He admitted he had no idea why he fell in love with Phoebe who is young and inexperienced. He told Ashley that they had not had sex and he had not planned to. He told Ashley that he hadn't had sex in a long time and that she would know how long!
In private, Phoebe told Rick that Ridge allowed her to keep her job at Forrester Creations. Phoebe told Rick that she needed to be with him. Since Ridge was leaving for Sidney, Phoebe convinced Rick that they could b together tonight!
At Forrester Creations, Nick has flashbacks of rescuing Taylor from the ocean after his boat was destroyed. Jackie feels bad for Nick when she walks in and sees him holding on to a rusty lantern that was once in the Shady Marlin. He laments that it is all that he has left of his boat. Nick then tells her that he has plans with Taylor for the evening. Jackie starts in on him again about taking it slow with Taylor since she believes Brooke will be free soon. Nick thinks his days with Brooke are over, but Jackie disagrees saying there is no way Brooke will allow Ridge to continue treating Rick badly. Jackie pleads with Nick to be there for Brooke when she comes back to him again. Before Jackie has a chance to continue her Brooke campaign, Taylor calls and tells Nick she has a driver set to pick him up. Once Nick gets off the phone, Jackie begs him to take things slow with Taylor, since Brooke will be free soon. Annoyed with her pushiness, Nick states that he is not interested in being Brooke's default guy any longer. Bidding his mother goodbye he tells her that he wants to be with someone he can count on for a change and if she really loves him she will try to understand that.
In Taylor's office, Stephanie comes by to invite her out for dinner, but Taylor informs her that she already has plans with Nick. Not happy with this news, Stephanie warns Taylor to ""be careful of that son of a bitch." Stephanie then tells Taylor she's concerned about the Rick/Phoebe situation and believes it will end up breaking Ridge and Brooke up for good. Stephanie admits that she hopes Taylor and Ridge will end up back together. Taylor tells her that she gave Ridge every chance in the world, but now it's too late since she has fallen in love with Nick. Trying to convince her otherwise, Stephanie points out that she will never be the love of Nick's life since that title belongs to Brooke. Taylor reminds Stephanie that not so long ago she was saying that Brooke and Ridge belonged together, but Stephanie admits that she was wrong about that. She tells Taylor that no matter how hard Nick tries to move on and forget Brooke he won't be able too and will toss Taylor aside as soon as Brooke is available. Stephanie pressures her to take things slow with Nick and hold out for Ridge who will need her after Brooke dumps him. Not into being Ridge's back up plan again, Taylor rushes out of her office to go meet Nick, leaving Stephanie alone to snoop. Stephanie gets worried when she finds a book there about having babies after 40 and makes a bee line to Forrester Creations. When she finds Jackie in Nick's office she demands to know where Taylor and Nick went on their date. At first Jackie isn't receptive, but once Stephanie tells her that she wants Brooke and Nick to get back together, Jackie warms up a little to her. Stephanie informs Jackie about the pregnancy book in Taylor's office and tells her they need to act fast. Jackie agrees, but tells Stephanie she has no idea about where Taylor and Nick are meeting for their date.
Meanwhile, Taylor leads a blindfolded Nick onto a boat that looks exactly like the Shady Marlin. She won't let him take the blindfold off until she has put his hands on the captain's wheel. When she takes the blindfold off Nick can't believe his eyes. Taylor excitedly tells him how a friend of his helped her find an exact replica of his boat. Touched by her gesture, he kisses her and thanks her. Taylor tells him that coming so close to death made her realize how much she cared about him. Wanting to show her the love and compassion that he feels for her too, Nick gets down on his knees and proposes .
Brooke looks out on Sydney Harbor thinking about how much Ridge would love the scenery so she calls and tells Ridge that he and Phoebe should join her because the Aussies are really interested in the whole line and the "Phoebe" fragrance they will be launching. As Ridge agrees, Brooke demands that Rick join them in an effort to heal the family. A reluctant Ridge agrees, and shares the news with Rick whom he gives only an hour to get to the Forrester jet. Rick tells an excited Phoebe they will all be heading Down Under, but not to let on to her dad that he told her.
Ridge tells Phoebe the news, and discusses his hopes that they can repair their father/daughter relationship. Onboard the plane, Ridge is anxious to get off the ground - without Rick, but he shows up in time. The young lovebirds acknowledge to each other that Ridge won't give them a moment's peace, but Ridge falls asleep, and the two share a kiss.
On the new boat Taylor bought for Nick, the romance continues as Nick, on bended knee, slips the whopper engagement ring on her finger and they embrace, laugh and kiss. Nick has another question for Taylor, asking if she will have his baby. Taylor surprises Nick with news that she's already been to the doc to make sure she's able to conceive because she knows how much a baby means to Nick. She sits on his lap and lovingly whispers that it would be an honor to have his baby.
Later, after consummating their engagement, Nick gets up to take a shower while Taylor makes them a snack. When his cell phone rings, Taylor answers to find Brooke asking about Nick picking up Hope. Taylor explains that Nick can't come to the phone and they are on the new boat she bought him. Brooke seems shocked, and Taylor keeps dishing that there's more news, but it should come from Nick. Taylor then spills it that Nick proposed and she accepted. Nick comes out of the shower and Taylor hands him the phone as a stunned Brooke weakly congratulates him on his unexpected engagement. Nick says that Brooke has moved on and it's about time he did. As they hang up, Brooke looks out on Sydney Harbor and remembers their wedding day, sailing off in the water, sharing a beach picnic and Nick's singing. At the same time, Nick has similar memories of Brooke including his proposal and lovemaking.
At Insomnia, Donna receives a call from Brooke in Australia telling her that Nick is now engaged to Taylor. Donna is shocked by this news and, upon Jackie's informed Jackie of this and then they both discussed a plan to overthrow Ridge and Brooke's wedding which Bridget, overhears and defends Brooke by saying that she shared a strong bond with Ridge and nothing would come between them even Rick and Phoebe.
On the Forrester jet, tension mounts as Rick, Phoebe and Ridge attempt to survive the 14 hour flight to Sydney, Australia.
Upon arrival they are met by Brooke, who entered the jet and welcomed them with open arms and urged them to enjoy themselves and not fight over the same issues as they did back at home. As Rick and Phoebe left alone for their hotel, Ridge expressed his concern fearing that further bad publicity would be detrimental to their company.
In Phoebe and Rick's hotel room, Phoebe received a call from Donna urging to make the best of her time alone with Rick. Phoebe agreed and then she and Rick shared a romantic kiss.
Sightseeing, Ridge romancess Brooke, apologizing for his distrust towards Rick and Phoebe and vows to behave himself in the future.
