Daphne Powell thinks her family's about to go to Brazil... but that was three months ago. Jim, Stephanie, and JJ realize proving you have super powers is easier done than said, so they show her what they can do: Jim lifts the couch single handed, Stephanie grabs water from the kitchen in milliseconds, and JJ says something really smart. Finally, to show Daphne what she can do, they all join hands. She sees everything that's happened to them since they got their powers, including the fact that she can access people's thoughts.
Later, Jim walks down the street as George briefs him on an art heist from the night before. As they talk, Jim spots a guy crossing the street about to be hit by a very large bus. Jim dives, saving the guy and denting the bus. The grateful man, Dave Cotton, owes Jim his life.
In the lab, Katie tells Stephanie she's in love with Joshua but she's terrified where it's leading as she's still a vir---, well you know... headed towards uncharted territory.
That evening, the Cotton family visits the Powells' home. Dave wants his wife, Michelle, and two teenage children, Chloe and Troy, to meet the man who saved his life. To express their gratitude, the Cottons invite the Powells for dinner. Excited to make new friends, which has been particularly difficult amidst their growing collection of secrets, Stephanie agrees.
Later, George calls Jim. There's another robbery in progress at the art museum. Jim arrives as the hi-tech thief frees a canvas from the wall. Jim warns the guy to stop, but the thief slings a handful of phosphorous caps at Jim, filling the room with smoke. As Jim shields his face, the guy makes a skillful getaway.
The next evening, Stephanie blazes her way through dozens of outfits. She wants to make a good impression on the Cottons. Her determination gets sidetracked when she realizes her red notebook -- the one documenting details of the family's powers -- is missing.
Across town, Katie and Joshua meet for a drink at a Star Wars lounge (Katie's pick). As he pours out his feelings for her, the time seems right to admit her chastity, but she grows scared and backs down.
The Powells join the Cottons for a backyard cookout. As the families bond, we learn the Cottons are new to Pacific Bay. They've moved around a lot, Seattle and Boston before now, so they're happy to make new friends.
The next morning, Daphne shows Chloe Cotton around school. Chloe gets a dose of Bailey Browning -- intimidating blonde, cheerleader, and student body presidential nominee. Chloe's not impressed. She suggests Daphne run against Bailey. Chloe's only known Daphne a few days and she can tell Daphne has a good sense of what's on other people's minds.
After class, JJ introduces Troy to Natalie. Troy's impressed JJ has a hot girlfriend. JJ explains she's sort of his girlfriend, but since they kissed she's been acting weird. Troy thinks it's because JJ's too nice. No matter how smart the girl, they always like their boys bad.
That evening, Katie invites Joshua home for a drink -- and there's no mistaking she means so much more than a drink. Joshua kisses her passionately. Katie interrupts him to admit she's a virgin. Struck by the news, Joshua suddenly has to go and leaves Katie humiliated and heartbroken.
The next day, George downloads Jim on recent art heists -- there have been recent ones in Boston and Seattle. Jim thinks it's weird that these are the same cities the Cottons lived in most recently. George understands that by 'weird' Jim means 'suspicious.'
In between classes, JJ spots Troy hitting on Natalie. JJ tries politely to get Troy to move on, but Troy dares him to do something about it. So... JJ punches Troy in the face.
That evening, Jim patrols the museum. When the thief breaks in again, Jim's ready. The thief snakes through the security lasers and pulls art from the wall. Jim's right behind him, but not quite as nimble -- he trips the alarm. As Jim chases the thief out, he sees he's wearing the same watch he saw before on Dave Cotton. As the cops close in, they both make a getaway -- the thief with the art, and Jim with a really bad feeling about his new friend.
The next day, Jim decides to ask Dave, subtly, about the heist. Dave sees through this and is offended Jim would accuse him of something so outrageous.
Joshua/The Watcher goes to King and tells him he wants out -- no more crimes. He has something better to live for now. King's unconvinced Katie will ever truly accept him, but Joshua's willing to take the risk.
Jim returns to the Cottons' house to apologize to Dave, but no one's home. He steps inside looking for Dave when he stumbles upon the stolen canvas, proof Dave's the thief! Michelle discovers Jim and wants to know what he's doing in her house. Jim says he's collecting proof her husband's a major art thief. Michelle professes Dave's innocence. He's not the art thief... because she is.
Jim calls Stephanie and she zoops over immediately. What are they supposed to do, turn in their friends? Stephanie talks with Michelle. As her friend, she advises Michelle do the right thing for herself and her family and turn herself in. Michelle knows she's right and promises to do so in the morning. She needs the night to come clean to Dave and the kids.
At school, Natalie finds JJ at his locker. Before she can speak, JJ apologizes for being immature and hitting Troy. Natalie's actually flattered that JJ would think she's important enough to fight for. She thanks him with a kiss before heading to class. Troy steps in, congratulating JJ. JJ realizes Troy was only acting like a jerk to give JJ the chance to be the bad boy. Wow, what a great friend.
After Bailey's speech, Daphne gets up to deliver hers. She reads what's on her schoolmates' minds and promises to make these things, the things they care about, her priority as president. The student body roars in applause. Daphne for President!
In an alley, Michelle Cotton waits with the stolen canvas. Stephanie zoops in and presses her to do the right thing. As they argue, the buyer arrives. He assumes Stephanie's a cop so he fires a gun at her. Before Stephanie can zoop out of the way, Michelle throws herself in the line of fire, and takes the bullet in her chest. The buyer drives off as Stephanie calls the police, worried for her friend's life.
Luckily, Michelle recovers. As Dave watches over her, he tells Jim how he should have realized what had been going on. Jim tells Dave not to blame himself. Michelle had a secret. Everyone has secrets...
Joshua comes over to apologize to Katie. He freaked out earlier because he realized how important a decision he was about to make. But now he's prepared to make that decision and he chooses Katie. Their passionate embrace quickly moves into the bedroom. Later, Katie wakes up next to Joshua, glowing. She gathers his clothes but out falls a red diary. Why does Joshua have Stephanie's notebook?