Phoebe goes to see Brad Baker and makes it clear to him that she is not going to testify that Shane tried to attack her, which leads to a call to the D.A. dropping the charges. Phoebe stops by the beach house to tell Shane that hes free and clear. Phoebe asks Bridget if Shane can stay there for a few more days. Thorne, Ridge and Eric meet to discuss their new company, which is costing them a lot in start-up. Eric refuses to cut costs, insisting that the Forrester name has always stood for quality. Nick begins his therapy sessions with Taylor, and talks of his youth after Frank Payne died, but clams up when he mentions that Jackie had money problems. Ridge is furious to learn that Shane is off the hook.