As Donna breaks the news to Eric about Marcus, Katie's heart has a breakdown in the middle of her birthday party.

Brooke and Ridge are in the office, readying to go to Katie's party. Ridge asks who will be there. Brooke reassures him that Rick and Taylor won't be there, which they both agree is a good thing. Ridge asks about Donna. Brooke's not sure if Donna's planning to be there. She's been on edge, Brooke explains, because Ridge and his siblings have been ganging up on her. "Logan, if your sister's clean and stays clean she's got nothing to worry about," Ridge says. Brooke questions if Ridge is only searching for skeletons in Donna's closet so he can break up her marriage to Eric. Ridge denies it, saying he doesn't want his dad to feel pain. They share a brief kiss, get ready to leave, but just as they're about to walk out the door, the phone rings and Ridge is held up by a conference call. "You owe me," Brooke says, and kisses him goodbye.

Eric has just walked in on Donna begging Marcus not to leave. "Is there a problem?" Eric asks. Donna says yes, there is a problem, and then lies that she was planning a special catered dinner for them, but he's ruined the surprise by walking in on the middle of her plans. She asks Marcus to give them a moment alone. Once Marcus is gone, she embraces Eric. "I hope you know how much you mean to me," she says. Eric says he thinks he knows what's going on with her. "You're pregnant aren't you? You and I are about to become parents," he says. She stares at him in disbelief. "Are you?" he pushes. She says nothing, just walks away. He follows her. She turns on him and tells him she's not pregnant. Eric is confused: why is she going through all this fanfare if there's no special occasion? She tells him that she's totally fulfilled with their marriage, but... "There's something else going on in my life... something truly amazing," she says. She says it's hard to put into words because she's afraid his opinion of her will change. But just as she gets down to telling him, his cell phone rings. He has to take the call, but dispatches the person on the other end quickly so he can get back into the conversation with Donna. He gathers that this is about her worry that a scandal will mean he'll have to leave Forrester Creations, and reassures Donna that she's not going to cause him to lose his place in the company. He starts to leave, but Donna stops him. "There's something I really do need to tell you," she says. Marcus enters just as she's ready to talk. Eric asks him to leave, but Donna says she wants Marcus to stay. Marcus offers to break the news to Eric, but Donna wants to do it. "Marcus is my son. He's my son," she finally blurts out. Eric stares at her with incredulity in his face.
Ridge is just finishing up his conference call when Ashley comes in, asking about Katie. She also questions how things are going between Ridge and Brooke. He says everything's good, except for Donna. "I just don't like being at odds with Dad over this," he says. But Ashley says this is what you have to endure when you want to protect your family. Ridge questions that Eric's loyalty isn't with the Forresters, but is with "his new family, The Logans." Ashley explains that the real reason she came up was to get his opinion on Donna's plans for the Sky Lounge on the roof. Ridge says it's a great idea, but terrible timing. "It's another way she's ingratiating herself in here," Ridge says angrily. "I just don't see what he sees in her. She seems so plastic, so unreal..." Ashley says for Ridge's sake she hopes Eric sees the light soon.

At Nick's house, Bridget and Nick are busy decorating the house for Katie's birthday. Bridget pleads with Nick to play nice with all the guests and be careful of Katie, whose heart is "not out of the woods... at all." Katie comes in and is not surprised to see that they've gone against her wishes and planned a party. "It's a way for us to celebrate a life that's been miraculously given back," Nick explains. Bridget agrees: the party is as much for them as it is for Katie. They give her a gift, a necklace that is the Chinese symbol for life. They also give her a Nerf basketball goal and she and Nick joke about who will win a game of one-on-one. Katie gets up and thanks Nick, then hugs him. Guests begin to arrive. Jackie gets Nick off to the side and insinuates that he's a lucky man getting to live with two sisters. He tells his mom to behave, but when Brooke arrives, Jackie has some snide comments to make under her breath. Soon Dr. Patrick arrives. He can't stay and has only come to see Bridget, to give her some bad news. "Katie's check up this morning... her test results were not good... she's showing signs of rejection," he tells her. As Katie is inside opening gifts, Dr. Patrick is advising Bridget to make sure Katie gets plenty of rest. He says he'll call later, and Bridget comes inside and puts on a brave face, telling a wondering Nick that nothing's wrong. "We have a party, remember?" she says, blowing off Nick's questions. Bridget's ready to cut the cake, but first she wants to make a speech. Katie doesn't want any speeches, but Bridget says this, too, is not about Katie, and that they all need a moment to tell her how grateful they are to have her in their lives. Her voice breaks as she talks. After a quick hug, Katie prepares to blow out her birthday candles. She places her hand over her heart as she leans forward... then slumps off the couch to the floor! "Katie!" Bridget cries, as everyone rushes to her side.
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