"I didn't do anything to Rick," sobbed Pam in Stephanie's arms. "This is a terrible mistake." Steph was finally convinced of her sister's innocence and they both wondered who could've framed Pam. She theorized that Donna and Marcus did this together and Stephanie vowed to uncover the truth.

Felicia was surprised when Rocco showed up at Forrester Creations. Thorne revealed that Rocco, who has been working for Forrester in Paris, had actually been in town for a few days. When Rocco bristled at the mention of Rick's name, Thorne revealed that Rick has been refusing to consider Rocco's request to transfer back to L.A. Thorne also explained to Felicia that he and Rocco were working on a project together.

At Forrester, Marcus encountered a smooching Rick and Steffy. "Excuse me, I thought this was a place of business," Marcus growled. Rick tried to make nice with him but Marcus said that he hoped that Steffy will one day open her eyes and see "the ass she's fallen for." After Marcus left, Rick was surprised to see Rocco in the hallway. Carner explained that Thorne approved his transfer back to L.A. for a project they're working on. "Its the bomb," Rocco said cryptically.

Donna left a note for Eric to join her in the steam room. Stephanie found the mushy missive and slipped into the steam room where Donna was luxuriating. Thinking Eric had come in she started cooing to her Honey Bear through the steam. Stephanie then dumped a pail of cold water on Donna and told her to come out for a talk. The ladies met in Eric's office, where Stephanie accused Donna of setting up Pam with Marcus. Donna stormed out, then Stephanie learned that Rick and Steffy were headed to the beach house.

Brooke praised Ridge for taking such a "huge step" in not fighting Rick and Steffy, but it was obvious that he still wasn't happy with the arrangement. Meanwhile, Rick and Steffy went to the beach house, where he had a romantic dinner of candlelight and wine ready. They didn't touch either as they started to make out on the sofa, but they were interrupted when Stephanie showed up. She explained that Steffy needed to leave at once because Pam is not the assailant, so the real culprit is still out there. When Rick said Stephanie was as crazy as her sister, Steph slapped him — twice! Steffy refused to budge and Granny threatened Rick if anything happens to her granddaughter.