

Jimmy and Pig are so busy playing a videogame they forget about homework. They make up a story about being attacked to explain the missing assignment...a mysterious masked gang attacked them, stealing Jimmy's satchel with the papers... Marcos jumps to the conclusion that the infamous Three Saints Gang is on his trail, and panics. His fears are compounded with Daisuke's claim that he too was attacked, (just to get Ami's attention). Jimmy and Pig's lie is getting them into deep water, and they don't know how to keep their heads above it all.
Bakufu, the famous Ninja master, literally drops out of sky (hence the hole in the school's roof) and offers to teach at Shuriken School. The Principal doesn't dare refuse, but Bakufu's fee is exorbitant.
As the School prepares to celebrate the anniversary of the town's foundation, a mysterious Ninja from Katana School makes off with Tokiro's (the city's father) famous flip-flops. According to tradition, Shuriken presents these flip-flops to the public during the commemorative parade. If Shuriken School cannot produce them, the school's entire assets will be handed over to Katana School!