At the beach house, Bridget warns Phoebe that Shane might be dangerous. Phoebe defends Shane saying he is sweet and funny and adds that even told her that he loved her. Phoebe feels terrible about leading him on in order to make him testify. She knows how much it hurt him when he thought she had been using him all along. Bridget understands how Phoebe feels about Shane but stresses that those feelings can be deceiving. She makes Phoebe promise to be careful. Phoebe admits that Shane got a little weird, but she thinks that's only because he felt betrayed by her. Before they can discuss it further, Shane drops by demanding to speak to Phoebe. Phoebe is surprised Shane new where to find her. When he confesses that he followed her there, Bridget threatens to call the police. Shane begs her to give him a minute and Bridget reluctantly complies. He then apologizes to Phoebe and tells her he would have gone to the DA's office and risked being put in jail if Taylor hadn't of gotten her freedom. He tells Phoebe he can't believe people would think he would ever try to rape her, as much as he cares about her. Shane says she inspires him to be a better person and he wants to be with her. Phoebe softens toward him and they kiss. As they are kissing, he hears sirens, accuses her of calling the cops and runs out.
At Massimo's, Jackie worries that Nick is spending too much time working and not enough time on his personal life. She thought the whole purpose of him gaining control of Forrester was so he and Brooke could run it together, but that hope vanished when Brooke chose to be with Ridge. Jackie feels Stephanie walked away unscathed, but Nick assures her she paid a price. Jackie also feels sorry for Eric being stuck with a wife like Stephanie. As Jackie continues to pressure Nick about dating again, Taylor drops by. She brings an olive branch and tells Nick that she wants to help him make peace with the Forresters. When Jackie leaves the room to go make tea, Taylor tells Nick he is too decent a man to take a company away from a family. Nick respects what Taylor is saying but tells her he feels completely justified in his actions after all the Forrester's have done to him. Nick reminds Taylor of how abandoned she felt by the Forrester's after Ridge dumped her. She tells him she forgave all of them, adding that everyone makes mistakes. Nick replies that she would know about mistakes, and tells her he thinks the only reason she is marrying Thorne is out of guilt about Darla. Taylor denies this and goes on about what a wonderful and forgiving man Thorne is. She thinks Nick can be forgiving too and encourages him to rise above his payback mode and give the company back to the Forresters. Taylor offers her services, saying she thinks Nick has a lot of issues that she could help him face. First, she recommends that he let go of his anger and stop holding grudges. She tells him he needs to get off his power trip and realize there is more to life than acquiring things like fashion houses that don't even matter to him. Before she leaves she hands him her card and tells him to make an appointment. After she leaves, Jackie who has been eavesdropping, walks in and compliments Taylor, saying she is way too good for the Forrester's. Nick agrees. Jackie pressures Nick to make an appointment with Taylor. Later when he's alone, Nick picks up Taylor's olive branch and remembers the night they almost made love. He decides to take Taylor up on her offer of therapy, hoping it will lead to something more stimulating.
Meanwhile a Taylor's, Donna stops by to clear the air. Thorne suspects that she is coming by on Nick's behalf, but Donna says Nick has nothing to do with it. She explains that she doesn't want to be at odds with any of the Forresters, especially now that Brooke is part of the family again. She adds that losing the company did some good since it forced Stephanie to work through some of her anger. Thorne says that doesn't justify what she did. Thorne thinks Nick is using her as a tool for revenge and warns her that Nick is nothing but trouble and she should stay away from him. After she leaves, Taylor comes home and Allie models her new flower girl dress. Thorne tells Taylor now that he and Allie have moved in, he thinks it's time for them to set a wedding date. Taylor agrees. When they are alone Thorne gives her back the engagement ring. When he puts the ring on her finger, he tells her they will be magic together and they kiss.
At Forrester Creations, when Nick became very aggravated with one of the Forrester vendors, Jackie wondered if Nick's running Forrester Creations was a good idea. Nick promised her there would be no failure with the business. Jackie encouraged Nick to take up Taylor's offer for counseling to address his issues. She also encouraged him to befriend Taylor. Nick enlightened Jackie that Taylor is an engaged woman. Jackie advised that he is ten times the man that Thorne is.
At home, Bridget heard a thump on her window then looked outside to find Shane lying on the ground. Shane had run to Bridget's beach house for safety from the homeless people around the beach who assaulted him. Bridget provided medical care for Shane. She notified Phoebe that Shane was there and injured. Phoebe asked Bridget not to call the police because she advised that Shane is not dangerous. Shane again reiterated that he had never met someone as sweet as Phoebe or Bridget. Bridget warned him not to take advantage of Phoebe. Bridget allowed Shane to stay at the beach house with her for the night. Phoebe called Shane and told him that she is getting his criminal charges dropped. Shane suggested he should leave town. Phoebe told Shane not to leave town because she believed in him. Shane was happy with what he heard from Phoebe.
Meanwhile at home, Phoebe tried to convince Ridge that Hector had mistakenly hit Shane with the bat in trying to protect her. Phoebe tried to explain that Shane would not have hurt her, but Ridge didn't want to hear it.
At home Taylor and Thorne made love. Taylor told Thorne that she might be able to get Forrester Creations back from Nick. Thorne did not approve of Taylor hanging around Nick who took Forrester Creations out of revenge. Thorne called Nick an enemy because of this. Suddenly Nick called Taylor to arrange to talk about his "demons". Taylor and Nick planned to meet at Forrester Creations the following day. Jackie was happy that Nick called Taylor and predicted something miraculous would happen to him. Meanwhile, Taylor promised Thorne that she is planning to get Forrester Creations back from Nick
At the police station, Phoebe tries to persuade Lt. Baker to drop the charges against Shane. She tells him that Shane would never hurt her and that Harry was the one who started the fight. At first, Lt. Baker resists, saying that only the DA has the power to drop the charges. However when Phoebe tells him she will refuse to testify against Shane, Lt. Baker admits that they have no case against Shane without her testimony. He agrees to talk to the DA and get the charges dropped, but he doubts that her parents are going to be happy with her decision.
At the Forrester's, Ridge tells Thorne and Eric that he's concerned about Phoebe's infatuation with Shane. He doesn't understand why Phoebe would be interested in a hoodlum like Shane when she has her pick of eligible suitors. Thorne assures him that Shane won't be a problem once he goes to jail and adds that Phoebe is too smart to get involved with him. Eric changes the subject by asking what they should use for their new company name. Ridge is annoyed that they aren't allowed to use their family name. Eric thinks maybe he can get Jackie to convince Nick to let them use it. Ridge doubts Nick will budge. Thorne confesses that Taylor has a plan to get the company back for them. He tells them about her taking Nick on as a patient in order to get him to realize that running Forrester Creations won't make him happy. Ridge and Eric think it's a ridiculous idea, but Thorne tells them not to underestimate Taylor and her plan, maintaining that it could be the answer to their prayers. Before they can discuss it further, Ridge gets a call from Lt. Baker informing him that Phoebe had the charges against Shane dropped.
Meanwhile at Forrester Creations, Taylor drops by for Nick's first therapy session. She tells him once he becomes more aware of his subconscious thoughts he will make better choices and stop sabotaging his own happiness. Nick is skeptical and doubts that subconsciously he wants to sell the Forresters back their company. Taylor tells him he isn't happy and he is kidding himself if he thinks power and money can replace having love in his life. She goes on to tell him he is now running a company that he doesn't care about, with employees that think of him as the enemy. Becoming annoyed, Nick tells her he doesn't consider preaching at him the best form of treatment. He concedes that some of the things she said are true, but adds that he doesn't think he can put much value on her analysis of his life since she is obviously biased. Beginning to feel like she's wasting her time, she accuses Nick of not having the guts to look inside himself. Nick admits that he has had a lot of bad things happen to him but argues that's life and you have to roll with the punches. Nick thinks he doesn't need therapy, but Taylor thinks he is just afraid to face it. Finally she convinces him to open up to her and Nick begins to tell her about his childhood. He tells her that his stepfather left Jackie with a ton of debt and she was always struggling to survive. It bothered Nick because he couldn't help or contribute. He tells her about how he felt good when he could help sometimes by bringing food home, that the sailors gave him. Then, suddenly he remembers something disturbing and abruptly ends the session, refusing to tell Taylor what it was that upset him. Taylor is still encouraged, and before she leaves says she will see him tomorrow for his next session.
At the beach house, Bridget makes breakfast for Shane and the two of them bond as she dresses his wounds. Picking up on her loneliness, Shane tells Bridget he thinks they have something in common. He believes they have both made bad choices in life. He tells Bridget he thinks she lives alone because she feels alone inside and people don't understand her. Bridget is surprised by what a perceptive guy he is. Before they get the chance to connect more Phoebe comes in. Shane is glad to see her and asks her how she and Bridget are related. Phoebe tells him Bridget is her aunt. Shane becomes nervous when he hears sirens, but Phoebe assures him that he has nothing to worry about. He is touched to learn that she has had the charges against him dropped. He calls her an angel and asks Phoebe if he can be a part of her life again. Before she can answer she gets a call from her father, upset with her for having the charges dropped. She gets off the phone quickly with him after Ridge realizes she is with Shane. Shane feels bad about coming between her and her father and offers to leave LA and get out of her life forever. Phoebe doesn't want him to do that and convinces Bridget to allow him to stay at the Beach House until he fully recovers. Shane thanks both of them and promises Phoebe to become the kind of man that deserves someone like her. Phoebe believes him and they share a romantic kiss.
Back at the Forresters', after he gets of the phone with Phoebe, Ridge vows that he will do whatever it takes to keep Shane away from his daughter.
Ridge stood in the bedroom remembering a time when a lovely Brooke seduced him when they were first in love. Now, brought back to the reality of today, Brooke once again entered the room, looking just as lovely as she did before. The two lovers moved ever so closely to each other, kissing passionately and then heading for their bed. During a moment of reality, when the two were talking about the present everyday things, Ridge told Brooke that Taylor hoped to get back Forrester Creations for the family. Taylor made a visit to their home and explained to them why she thought she might be able to persuade Nick to understand that he would find no happiness in something that he really had no interest in.
The subject then changed and Ridge questioned Taylor about his mother. He told her that she seemed to be coping with the truth but wondered if there wasn't anything else that the family could do to make it easier for her. Taylor told him that they should all just be there for her when she needed them. Taylor mentioned that under the circumstances she would have preferred that Stephanie also confront her father, but since that couldn't be, she hoped that Ann would have acknowledged her part in Stephanie's trauma and help to heal Stephanie and close the door on the past.
As Stephanie and her daughter, Felicia chatted, Felicia moped around due to Dante's absence. She had hoped that he would have returned by now, but the deal he was working on was taking longer than anticipated. Stephanie and Felicia then began talking about the past things that Stephanie had to endure as a child. Felicia told her that she, now a mother herself, had more pride in her own mother for raising her as she did. She had protected all of her children as they were growing up, something Felicia told her mother, she would never forget. Stephanie said that it is all over now and no one will ever have to deal with Ann again. She was glad in a way because she had always hoped that her mother would somehow acknowledge the fact that the abuse actually happened, but since she never did, Stephanie had no choice but to just put it behind her and move on as best as she could. The doorbell suddenly rang and Stephanie went to answer it. When she opened the door, there stood Ann and Stephanie's sister, Pam. Stephanie immediately took a defensive attitude and slammed the door on both of them. Felicia asked her mother if she wasn't curious about what they wanted, and was told that she wasn't and not to answer the door. Stubborn Felicia marched to the front door and invited them both in as Stephanie looked a bit angry. Ann tried to plead with Stephanie to listen to her, because she had come a long distance to tell her something. She then admitted that everything that Stephanie had said on her trip to Chicago, was true. Ann admitted that she knew of the abuse and the welts on her little one's body but always thought that each time it happened, would be the last time. She admitted to having no courage to stand up to her husband for the sake of her child. She asked Stephanie to forgive her. Stephanie found herself without words.
Ann begs for Stephanie's forgiveness. Stephanie tells her she accepts her apologies, but cannot forgive her and then forces Ann and Pamela to leave. At the Forrester offices, Nick invites Taylor out for lunch on Nick's boat. Taylor accuses Nick of trying to avoid their therapy sessions but he admits he is just more comfortable at the Shady Marlin. As Nick and Taylor start to explore Nick's past, Nick tells Taylor that the sailor friends he had growing up were better men on their worst days than his real father, Frank Payne, ever was and that they were better off when he died. Jackie tries eavesdrops on Nick and Taylor's conversation from the reception area. Felicia tells Pamela that she's curious to know what kind of people she and her grandmother are that Stephanie would shut them out.