The crew exchange secret Santa gifts, Jake scrambles after his personalized inscription to Dylan ends up with Gavin, Frank acts like a little kid after helping with Claire's gift for Jake.

Gavin starts a rumor to keep Dylan and Jake apart, Claire figures out that Penny likes Jake, Frank is employee of the month so he needs a haircut, Jake kisses Penny just as Dylan finally has a realization.

The plots of interoffice romance thicken as Jake becomes more involved with Penny, and Dylan begins to feud with Gavin.