Katie and Nick awoke all cuddly after making love. (Sadly, Nick still hadn't shaved, so Katie had better beware of beard burn.) Nick asked Katie to move in with him and Jack. Later at Brooke's, Katie was on Cloud Nine as she gushed to Beth. Beth warned her that she shouldn't assume Brooke would be thrilled for her, because of Bridget. Weren't Katie and Nick rushing this? Beth very smartly played the voice of reason. Too bad Katie was in no mood to listen. She was so ecstatic about her happiness, she was certain everything was going her way.

Ridge and Brooke awoke all cuddly after making love. Brooke was basking in the afterglow of Ridge allowing Jack to live with them. This earned Ridge another go in the sack. Afterwards, they discussed getting the paperwork in order. Ridge gingerly said they could go by Nick's to discuss it. They briefly discussed the Nick/Katie relationship and then went over. Cue Ridge and Nick scowling at each other. Nick wanted to make sure Ridge would be okay with Nick and Brooke co-parenting, and Ridge wanted to make sure Nick could deal with him being the stepdad. Ridge also wanted to make sure that Nick wouldn't pull rank and someday take Jack away from Brooke. As they headed for the door, Nick was left with a lot to chew on. He stopped them and agreed to draw up papers for shared custody. Brooke hugged him as Ridge looked on. "I am doing this for you and for Jack," said Nick. As they hugged again, Ridge looked on.