Julia is tempted by sex; Kirsten gives Charlie another chance; Bailey falls in love.

Bailey and Kate disagree over sex; Charlie sets out to impress a potential employer; Claudia's success goes to her head; and Julia struggles in school.

The arrival of an old family friend disrupts the Salinger household.

Kristen and Charlie sleep together. Later, she is cold to him and tells him that she slept with him because she is sick and scared. Bailey plans a trip with Kate. Her father wants to send her to a boarding school in Connecticut, but Bailey finds out that she is wants to go. They fight and Kate tells him that she will have sex with him, but he refuses to because she doesn't mean that. Julia and Morgan go on a date. Nina tells her to be mysterious, surprising and make him jealous. Claudia overhears their conversation and do all that to get Arnie's attention. Charlie tells Kristen that he loves her and will be there for her. She tells him that she can't have babies.

Charlie tries out how Kirsten's relationship with Ben Atkins is. Julia is surprised to find out that Justin is dating Libby Dwyer, her friend. Claudia's relationship with Artie is in big question when she take over his role in ""Oliver"".

Bailey urgently travells to L.A. to find missing Jill. In the meantime, everyone is too occupied with Claudia's 12th birthday. Julia spends some time with Danny, a male who is HIV positive.

Bailey interferes in Jill's business when she decides to take over of preparations for a school dance marathon. Julia does not wants to rush into having sex with Justin. Charlie realizes that he needs his family now more than ever, so he's in doubts about leaving the house.

Claudia breaks her arm while ice-skating with everybody, and Ross worries about her future as a violinist. Julia gets Griffin a job at Salinger's. He skips the first day and Charlie fires him in the second. Bailey and Sarah's relationship starts to get serious, and she tells him that she's not Jill, and things are different with her. A fortuneteller tells Kristen that she won't marry Charlie. She convinces him to take dancing classes for their wedding, and they fight. Julia tells him how important dancing is for a woman at her wedding. Charlie tells Kristen that everything will be fine. Julia sees Justin with another girl and he is mean to her. She is mad with Griffin for not being romantic, so he buys her a helmet for his bike.

Charlie decides to take Claudia with him to Mexico. Charlie meets a woman at the hotel lobby and Claudia gets mad at him, saying that he never loved Kristen in the first place. She meets a boy and they kiss. Julia and Justin can't stop having sex, and she gets confused when he is cold to her. Justin tells Julia that he doesn't want to go through the same thing again. Bailey joins Sarah at her grandma's party. While reading grandma's old letters to her, she finds out that she's adopted. She is very confused about herself and goes to Bailey for comfort. Charlie tells Claudia that he misses Kristen and they run into her in the house when they get back.

One of Charlie's clients tries to seduce him. Emily says she thinks it's too soon to sleep with Charlie, so he sleeps with his client. Julia is having problems in her computer class, and asks Miller to be her tutor. After he kisses her by surprise, she backs off. She doesn't want any help from Justin, so they make a deal: an A for a date. Bailey gets a scholarship from a stranger. During dinner, his benefactor asks too much about Bailey's parents. The next day he goes to the cemetery and finds yellow roses by his mother's grave. He figures that the man who is helping him is in fact his grandfather. Bailey asks him to meet the others, but he refuses. Bailey tells him that he doesn't want anything from him. Jake surprises everybody when he introduces himself during family dinner at Salinger's.

Julia doesn't want to go to school, and when she does she feels awful and guilty. She lies to Justin and Charlie and runs away to New Orleans to meet Griffin. She feels safe around him. They spend time together, talking about what happened to her, and he tells her to go back home. Bailey is jealous about Sarah for wearing tight clothes in her shows and for hanging out too much with her band. They fight because she thinks he's controlling her too much. Kathleen wants to be more in Charlie's life. She invites the whole family to go to Hawaii and Charlie gets mad at her because he wants to keep it casual. He tells her that he doesn't love her and she attempts suicide.

Kristen is getting more and more depressed, and not even a job as Salinger's hostess makes her feel better. Charlie tries to help her as much as he can, but nothing seems to work. He wants her to get better fast and medication can take 6 weeks. Cooper lets Bailey crash in his place. Julia starts to date him and things get awkward between the three of them. Bailey asks Julia not to date his friend, but she decides to date him anyway. Later she realizes how much they don't have in common. Bailey is looking for a new place and finds one cheap with a good roommate, Callie, who Sarah really doesn't like, but Bailey tells her not to worry. Claudia has to find a plumber to fix the pipes and gets yelled at because it costs 3,000 dollars, but she says she's 13 and that was not her job.

Charlie has a slogan contest at Salinger's and the winner wants to bring homeless people to have dinner at the restaurant. Charlie has to kick them out so his clients won't leave and Grace prints in the paper what he did, giving him a hard time. They have a discussion and after Grace admits being wrong about him they come up with a solution. Sarah is worried because Bailey is drinking too much, but he says he's only celebrating. He tries to get in the hockey team but he's not in good shape, so he gets invited to the wrestling team, which is the worse in school. He doesn't support Sarah's new job and they have a fight. She says he's changed. Julia is having problems with the roofers. Alec offers her pot, and she turns it down. She talks with his brother and he fires him. They flirt. Claudia tries to get back at Charlie for not letting her go to the conservatory.

It's Christmas. Jake comes back. Charlie decides to get rid of all Kristen's stuff left so he can finally move on with his life. He tries to help a homeless man at the restaurant. Sarah and Callie are away for the holidays and Bailey wants to spend it all by himself, but Coach doesn't let him. Julia notices that Jake can't see very well and he tells her he's going blind. Charlie sees him leaving and Jake says he has to go for his chemotherapy appointment. Julia asks Bailey to spend Christmas in the house and he brings Coach with him since his daughter is not coming anymore. Stuart gives Claudia a very expensive gift and she tries to give him a bad gift, but he loves it. She tells him that she doesn't like him in that way, and he gets mad, but apologizes and stay over for Christmas dinner. Grace shows up and Charlie invites her to stay, and they all celebrate Christmas.

Grace's parents are spending time with them, and Grace doesn't like it, but Charlie does. Claudia is spending time with Avery, which makes his son jealous of her. Bailey spends all his money in drinking and can't afford a clown for Owen's birthday party, so he dresses as a clown. He gets to the party drunk and ruins it. Martin tells Charlie that Bailey might have a drinking problem, but Charlie refuses to accept that idea, even though everybody else thinks so too. Julia breaks up with Sam because he's a racist.