After Donna confesses to Katie that she chickened out on telling Eric about Marcus, Katie is forced to tell her that she is dying. Bridget and Nick plan a sailing trip on the Shady Marlin II for Katie where Bridget selflessly insists that Nick take Katie alone. While on Catalina island, Katie is no longer able to keep up her brave façade and becomes an emotional wreck as Nick comforts her. Taylor and Ridge reunite with Steffy, who has returned from attending college in London. After Ridge convinces Steffy to stay in Los Angeles to work at Forrester Creations, Taylor surprisingly gets a thumbs-up from Steffy about her relationship with Rick.