Katie arrived at Bill's office to deliver an invitation to the fashion challenge between Forrester Creations and Jackie M but walked in on a romantic dinner setting. Katie assumed that Bill was entertaining someone else but he revealed that the setting was for her. As they dined together, Katie asked Bill to be fair and write an honest review about their newest collection. She also pointed out how important her Royalty p.r. campaign is to her. They clashed over letting emotions get in the way of business. When he said that he still wanted to take over Forrester Creations, Katie got upset. He admitted to caring about her and they almost kissed.

Brooke told Ridge and Donna that she was confident that their designs would trump Jackie M's. Ridge was sure that Bill or Whip would resort to sneaky tactics and worried about Forrester's future. Brooke assured that there's nothing Bill can do to mess things up. Ridge gave Brooke a grateful hug. Meanwhile Bridget stressed big time over her designs for the fashion duel.

In the Spencer jet, Jarrett schmoozed the celebrity judges: Sergei (party planner to the stars), talk show host Rich Ginger and Melissa Rivers with champagne and caviar. The trio was rightfully suspicious that Bill Spencer had a hidden agenda. Jarrett finally explained that his boss wanted Jackie M to be declared the winner and in exchange, Melissa would get her own column in Eye On Fashion, Rich would get Bill's yacht in St. Tropez for two weeks and Sergei could plan Bill's annual charity event in the Hamptons. The judges gave in and toasted to their deal. Jarrett called Bill with the news but warned his boss to rethink his plan so he won't hurt Katie.