Danger Bear looks and acts like all the other X-Bears, but wears a golden helmet with diminuative wings attached to it. The helmet resembles Thor. In fact, Danger Bear is based on Thor himself, with the Rod of Justice based on Thor's famous hammer.
Naughty Bear has been invited to a party by Cop Gordon as a cake-tester. Naughty, prompted by the unseen Narrator, goes to the party and tries to shake hands with Cop Gordon. Cop Gordon appears to be about to shake hands with Naughty, only to knock over some jelly to reveal a button that he presses, releasing several search lights. An X-Bear then flies to the island and waves to the bears, revealing the bears plan to use the X-Bears to eliminate Naughty. Then Danger Bear arrives, wielding his Rod of Justice, a weapon that can lobotomize other bears.
As the bears cheer as Danger Bear shows up, they don't know Naughty Bear has run back to his hut. Naughty is displeased that the bears would trick him like this, and decides to punish Cop Gordon and Danger Bear's number-one fan, Bubbles.
For most of the Episode Danger bear is unseen. He doesn't appear again until the Final Zone, which is the same Zone Gordon and Bubbles appear in. Despite being the leader of the X-Bears, he isn't very important in the Final Zone, with the player having to kill Cop Gordon and Bubbles. However, the player gets a bonus point for killing an X-Bear, including Danger Bear, and if you kill an X-Bear wielding the Rod of Justice, such as Danger Bear himself, you can take the weapon and use them on other bears, as when you have beaten the bear up enough, you are allowed to use thew Rod of Justice on the bear, which zaps the bears eyes and into the brain, destroying the bear.