Ridge kisses Katie and pulls back only to see Caroline. Caroline continues to confide and rant to Ivy. Ivy is team Caroline and Ridge. Caroline calls herself selfish Ivy tells her no she is not. Caroline praises Rick and says that she is married to a wonderful man but, every day she can't wait to see another man. Who is engaged to Rick's aunt. Ridge tells Katie he is going to finish their partnership - they only have on more design. Katie thinks its best he end things with Caroline. Ridge calls Caroline and asks her to meet him at Brooke's cabin. Ivy and Katie talk about Caroline and Ridge - Katie says that Ridge and Caroline are going to resolve their partnership. Ridge is at the cabin drawing he flashes back to his daydream of Caroline. Caroline arrives. Caroline wants to know why they met there and not his office. Ridge tells her that he don't need Rick breathing down his throat. Ridge mentions Brooke - Caroline is jealous of him mentioning Brooke. Ridge tells her this has to end its not right. Caroline tells him he is feeling something soon. Ivy questions Katie on why Ridge and Caroline need to resolve their partnership. Ivy asks does Caroline know. Katie says she will soon. Ridge admits to thinking about Caroline all the time. Ridge says he loves Katie and that his relationship with Caroline could come between this. Ridge apologizes to Caroline for putting her in the middle of him and Rick's problems. Caroline and Ridge are sad about their relationship ending.Ridge shows Caroline a new sketch he drew. Caroline is happy for him but, sad because he won't need her anymore. Ridge thanks Caroline and Caroline thanks Ridge for everything. Caroline says they will have their own designs individually. Ridge brings up the kiss Caroline says no one needs to know. Caroline says she'll miss them. Ridge says Caroline taught him things he didn't know about himself. Caroline says that Ridge changed her as a designer and a woman. And that she'll treasure their time together - Ridge feels the same. Ridge says that Rick is lucky. They draw together one last time. A passionate kiss ensues.