River Ruler Entertainment: Nicaragua Water Waters Team Theme Song

River Ruler World Wide Franchise Opportunities

In The Tether Together Of Tethered Rapid Surfing No More Than 50 River Ruler Entertainment Headquarters And 270 Team Franchises Available World Wide. Let Us Turn The Key Behind Closed Doors Into The New Just So We Are Aware; The Trademark Of Something New, Through River Ruler Entertainment Is Governed By City, State, Federal And International Law, By The Federal Trade Commission And World Trade Organization.

The Origin And Headquarters For All That Is New To Follow Through With Is The Eugene Oregon Tethered Rapid Surf Crews By Laws Throughout The World. It Would Be Against Our Better Judgement To Represent All Unseen Where Ever We Go Throughout The World, So Check With the Local River Civilizations Governments And Authorities.

This Offering Circular Here In Contained Is Provided For Your Own Protection And Contains A Summary Only Of Certain Material Provisions Of The Franchise Agreement. This Offering Circular And All Contracts And Agreements Should Be Read Carefully In Their Entirety For An Understanding Of All Rights And Obligations Of Both Franchisor And Franchisee.

A Federal Trade Commission Rule Makes It Unlawful To Offer Or Sell A Franchise Without First Providing This Offering Circular To The Prospective Franchisee At The Earliest Of: 1) The First Personal Meeting; Or 2) Ten (10) Business Days Before The Signing Of Any Franchise Or Related Agreement; Or 3) Ten (10) Business Days Before Any Payment. It Is Required That A Copy Of All Proposed Agreements Relating To The Sale Of The Franchise Be Delivered Together With The Prospectus.

If This Offering Circular Is Not Delivered On Time, Or It Contains False, Incomplete, Inaccurate, Or Misleading Statement, A Violation Of Federal And State Law May Have Occurred And Should Be Reported To The Federal Trade Commission, Washington, D.C. 20580, Or The Local Office Of Commerce.

River Inside Out

Generally The Initial Investment For Opening A New River Ruler Entertainment Marketplace Team Franchise Including Franchise Fee, Will Range Approximately Between One Hundred And Fifty Thousand (150,000,00) To Sixty Million Dollars (60,000,000) For A River Ruler Entertainment Marketplace Team Franchise, Which Will Vary Depending On The Size And Location Of The Franchise And Other Variables. The Franchisee Should Keep Reading Inclusive Of This Offering Circular For Further Explanation Regarding The Total Investment For A World Within A World From The River Inside Out When Sovereign Grants Vestige The Favor Of Habit Of Will. A World Is Established So Manifest Becomes Reality And A Culture Embraces The Customs Whereby Set Down In The Act Of Goodwill Of The Leader Upfront In The Beginning; Given To A Cause To Establish The Destiny Of Their Creation Where On Their Honor Stands To Offer To The World Beyond Them In That Worlds Customary Language And Actions So Let Us Honor The Ancient Powers That Be In Unison With The Modern Powers That Be With A River Ruler Entertainment Team Franchise That Honors And Spreads Cultural Awareness As Well As Creates Modern Energy With A Retaining Wall Irrigation System.

Descriptions Of Franchise Building Complex

The Following Is Brief Descriptions Of The Drawings Up Above And Down Below Pertaining To The Custom Franchise Retaining Wall Irrigation And Hydro Energy System Of A River Ruler Entertainment Building Complex:

A. These Lettered Arrows Point To The Inlet Portion Of The Retaining Wall Hydro Energy System.

B. These Lettered Arrows Point To The Flow Of The Current From The Inlets.

C. These Lettered Arrows Point To The Flow Of The Current Through Larger Gaged Pipes Than Referred To In Part B.

D. These Lettered Arrows Point To The Release Valves Of The Water To Be Used To Create Hydro Energy.

E. These Lettered Arrows Point To The Bridge Energy Pump, Generator, Filter Tube Elevator Racking System. See Drawings Referring To E Up Above.

F. These Lettered Arrows Refer To The Flow Of The Current Of The Water Used To Create Hydro Energy.

G. These Lettered Arrows Point The Release Valves From The Hydro Energy Side To The Tethered River Boarding Rapid Surfing Side Of A Circular

Retaining Wall In Between The Two Currents.

H. These Lettered Arrows Point To The Bridge Tie Off Pump,Filter Tube Elevator Racking System. See Drawings Referring To H Up Above.

I. These Lettered Arrows Refer To The Flow Of Rapids Used For Tethered River Boarding And Rapid Surfing.

J. These Lettered Arrows Point To The Out Flow Valves For The Water To Go Back To The River.

K. These Lettered Arrows Point To The Flow Of The Current.

L. These Lettered Arrows Point To The Under Water Pendulum Elevator To Control The Direction Of The River Back To The River Whether Needed Up River Or Down River From Original River Depending On How Big Of River And Flooding Parameters.

Departments

Rising Through The Roaring Rapids River Deep Comes The River Ruler Entertainment Marketplace Franchise Offering Plan For Tribal And Environmental Justice Through Rural And Urban Culture Coming Together Through The Tether Together With The River Ruler Entertainment Franchise Offering Plan. The Franchisor Is River Ruler Entertainment That Began In Oregon With The D.U.N.S. # 941329976 For Government Contracting And Record Keeping Purposes. The Name Under Which The Franchisor Is Currently Doing Business As River Ruler Entertainment And JTM Rapid Boards Riding Up Through Into The River Marketplace Procuring The Innovations Of Products And Services Through Environmentally Sound Energy Creating; River Ruler Entertainment Team Franchise Marketplace Facilities And JTM Rapid Boards Online Catalog. Where With The Franchisor Intends To Do Business Under The Paper Reduction Act Of 1999 To Reflect River Location Access Bulk Sales Making And Distribution Per Local Territory Face To Face And Phone To Phone Access Even Online. Each Team Will Get 60% Of All Proceeds After 50% Upon Executing The Franchise Agreement; For Two Years, For Their Invites To The Insights, Team Logo Representation With The Franchisor Logo Inside Of The Team Logo, To Reflect Within To Without; Realizing The Gift Given And Balanced Aggression, Through The Sports For Peace Causes Between All River Civilizations And Tribes Through This Sport. The Days Of Justice, Peace And Prosperity Through This Sport Will Rise; The Tribal Justice Exchange Meetings Of The River Locals, Powers That Be, To Reflect The Image Of The Environmental, Sports, Arts & Entertainment Charter, So As To Avoid Misrepresentation And Passing Off As Any Other Sport. The Franchisor's Principal Place Of Business Is Eugene Oregon, In The United States Of America Where The First Competition Will Be In The Summer Of 2018. The Offering Of River Ruler Entertainment Franchises Represents The Offering Of Franchises With Jeremy Tobias Matthews As The Offeror. The Contributing Leaders And Founding Headquarters Somewhere In The River Of Life Pursuant To Giving Back To What Takes Care Of River Valley People In The River Valley Abundance Offerings Of Goods And Services Traded Throughout The World Through The River Ruler Entertainment River Marketplace Team Franchises. River Ruler Entertainment And JTM Inc. As Well As The Board Of Directors Proxy Founding Shareholders Are Based On Partnership Shareholders As Executive Directors Per Team Franchise Available. Once Open Franchisees Will Compete. Each Team Will Have 20 Female And 20 Male Competitors And 10 Of Each Will Be For Back Up In Case Of Injury. The Competitors Will Compete In A Five (5) Minute Short Ride And A Fifteen Minute (15) Long Ride. Each Competitor Will Be Judged On How Many Individual Power Moves And Smaller Moves Done On The Surface, Beneath It, And Above It, As Well As Posture Technique And Style Throughout Duration Of Each Ride Without Repeating Too Many Of The Same Tricks Throughout The Ride. The Total Points For Each Individual Goes Toward The Team Total. Each Franchise Will Have The Following Departments:

DEPARTMENTS

1. Financing

2. Accounting

3. Engineering & Project Management

4. Research & Development

5. Marketing

6. Logo, Imaging And Publishing

7.Distribution

8. Concert Production

9. Film Production

10. Manufacturing

11. Clothing & Apparel

12. Charter Events And Competitions

13. Movie&Radio Channel

Litigation

LITIGATION

Neither The Company Nor Any Person Identified In The Aforementioned Of This Offering Circular:

A. Has Any Administrative, Criminal Or Material Civil Action (Or A Significant Number Of Civil Actions Irrespective Of Materiality) Pending Against Them Alleging A Violation Of Any Franchise Law, Fraud, Embezzlement, Fraudulent Conversion, Restraint Of Trade, Unfair Or Deceptive Practices, Misappropriation Of Property Or Comparable Allegations. [Note Such Items Must Be Listed Here, If Any, By The Franchisor.]

B. Has, During The Offering Circular Time Period, Been Convicted Of A Felony Or Pleaded Nolo Contendere To A Felony Charge Or Been Held Liable In A Civil Action By Final Judgment Or Been The Subject Of A Material Complaint Or Other Legal Proceeding Where Such A Felony, Civil Action, Complaint Or Other Legal Proceeding Involved Violation Of Any Franchise Law, Fraud, Embezzlement, Fraudulent Conversion, Restraint Of Trade, Unfair Or Deceptive Practices, Misappropriation Of Property Or Comparable Allegations. [Note: Such Items Must Be Listed Here, If Any By The Franchisor.]

C. Is Subject To Any Current Effective Injunctive Or Restrictive Or Decree Relating To The Franchise Or Under Any Federal, State Or World Wide Franchise, Securities, Antitrust, Trade Regulation Or Trade Practice As A Result Of A Concluded Or Pending Action Or Proceeding Brought By A Public Agency, Or Is Subject To Any Currently Effective Order Of Any National Securities Exchange (As Defined In The Securities And Exchange Act Of 1934, 15 U.S.C.A. 78 (a), et seq.) Suspending Or Expelling Such Person From Membership In Such Association Or Exchange.

BANKRUPTCY

During The Team Franchise Offering Circular Time Period, Neither The Franchisor Nor Any Predecessor, Current Officer Or General Partner Of The Franchisor Has Been Adjudged A Bankrupt Or Reorganized Due To The Insolvency Or Was A Principal Officer Of Any Company Or Partnership At Or Within One (1) Year Of The Time That Such Company Or Partnership Was Adjudged Bankrupt Or Reorganized Due To Insolvency, Or Was, Or Is, Subject To Any Such Prior Or Pending Bankruptcy Or Reorganization Proceeding.

Franchisee's Initial Franchise Fee And/Or Other Initial Payment

FRANCHISEE'S INITIAL FRANCHISE FEE AND/OR OTHER INITIAL PAYMENT

The Initial Franchise Fee Is Twenty-Five Thousand Dollars ($25,000.00).

From Time To Time The Franchisor May Franchise An Existing River Ruler Entertainment JTM Inc. Team Franchise Facility Which Was Previously Operated By The Franchisor Or A Predecessor Or Was Repurchased From Former Franchisees By The Franchisor. In Such An Event, The Purchase Price Will Be Determined By Negotiation Between The Franchisor And The Prospective Franchisee Based Upon The On Going Concern Value Of Such Existing Business. If The Franchisee Is Purchasing An Existing Business Previously Owned Or Operated By The Franchisor, The Purchase Price Will Typically Be Paid On A Mutually Determined Closing Date.

Proceeds From The Initial Franchise Investment Fee Are Paid Directly To The Franchisor And The Franchisor Does Not Allocate Any Sum For Any Specific Expense Incurred By The Franchisor.

Each Franchisee Will Pay An Identical Franchise Investment Fee. Franchisor May Adjust The Initial Franchise Investment Fee From Time To Time In The Future Subject To Prior Approval By Applicable Governmental State Agencies Regulating Franchise Or Business Opportunities.

Proceeds From The Initial Franchise Fees Are, In Part, Used To Pay Some Of The Following Expenses And Costs Of The Franchisor.

(1) Assistance And Supervision Provided By River Ruler Entertainment JTM Inc. For The Opening Of The Franchisee's River Ruler Entertainment Marketplace Facility And JTM Rapid Boards Catalog Usage For Their Teams Products And Services Access.

(2) Continued Supervision And Assistance For The Franchisee's River Ruler Entertainment Marketplace Facility And JTM Rapid Boards Catalog Usage For Their Teams Products And Services Access.

(3) Preparation And Distribution By Franchisor From Time To Time Of Operations Manuals And Other Technical And Policy Bulletins And Manuals;

(4) Legal Fees, Accounting Fees, And Compliance With Federal, State, And Other Laws;

(5) Enforcement And Protection Of All River Ruler Entertainment Marketplace Facilities And JTM Inc. Trademarks, Trade Names, Commercial Symbols, Service Marks, And Confidential Information Associated With The Franchise;

(6) Research And Development Relating To The Management And Operation Of The Franchise Business;

(7) Selling, General And Administrative Expense, And Benefits Of Employees Of Franchisor.

OTHER FEES

A. Royalty

Commencing With The Opening Of The Franchisee's Franchise To The Public, The Franchisee Will Be Required To Pay The Franchisor Weekly During The Term Of The Franchise Agreement And Any Extension Thereof, A Continuing Royalty Equal To Six Percent (6%) Of Franchisee's Prior One Week Period's Gross Sales And Services. Payments Must Be Received By The Franchisor Within Three (3) Calendar Days From The Saturday Of The Previous Week. Payments Must Be Mailed First Class Mail, Postage Prepaid And Properly Addressed To The Franchisor. A Handling Fee Of Twenty Five Dollars ($25) Will Be Charged For Each Day That The Franchisee Is Late In Submitting Same. The Royalty Is Uniform As To All Persons Currently Acquiring A Franchise And Is Not Refundable.

B. ADVERTISING FUND FEE

Commencing With The Opening Of Franchisee's Franchised Business To The Public, The Franchisee Will Be Required To Pay The Franchisor Weekly During The Term Of The Franchise Agreement And Any Extension Thereof, A Continuing Advertising Fee Equal To Three (3%) Of Franchisee's Prior One Week Period's Gross Sales And Services. Payments Must Be Received By The Franchisor Within Three (3) Calendar Days From The Saturday Of The Previous Week. Payments Must Be Mailed First Class Mail, Postage Prepaid And Properly Addressed To The Franchisor.

The Franchisor Reserves The Right To Raise The Percent Of Gross Sales And Services Applicable To The Advertising Fee From Three Percent (3%) To A Maximum Of Six Percent (6%) At Any Time Upon Thirty (30) Days Written Notice.

The Franchisor Will Assist In Developing All Advertising Materials Developed Or Altered By The Franchisee Prior To The Use Of The Same Said Materials Of The Franchise If Altered And Otherwise Will Be New Material Within The Franchise. All Ad Fund Contributions And All Interest, Dividends And Other Amounts Earned Thereon Shall Be Used Exclusively For Advertising, Marketing And Public Relations Purposes For The Collective Benefit Of All Members Of The Franchise System.

The Franchisor Shall Be Obligated To Spend At Least Fifty Percent (50%) Of The Advertising Fund Contributions On National, Regional Or Local Media Or Other Marketing Techniques Or Programs Designated To Communicate The Service Of The Franchises To The Public According To The Sole Discretion Of The Franchisor.

The Remaining Fifty Percent (50%) Of The Advertising Fund Contributions, In Addition To The Above-Described Purposes, Which May Also Be Expended By The Franchisor In Its Creative And Production Costs In Reimbursement To The Franchisor For Reasonable Accounting, Administrative And Legal Expenses Associated With The Advertising Fund And For Other Purposes Deemed Appropriate By The Franchisor To Enhance And Promote The General Recognition Of The Franchise System And Its Marks.

The Franchisor Shall Not Be Liable For Any Act Or Omission With Respect To The Advertising Fund Which Is Consistent With This Agreement Or Done In Good Faith.

C. LEASEHOLD-IMPROVEMENTS & FIXTURE & EQUIPMENT INSTALLATION

Leasehold Improvements Include Such Things As Walls, Electrical And Plumbing & Irrigation Installation. Fixture Installation Involves The Installation Of Tether Points And Stretch Systems, Sinks, Waste Management Facilities, Bathrooms, Sales & Service Booths, Lifeguard Stations, Clothing Racks And Display Shelving Plus Equipment And The Like. Leasehold Improvements And Fixture Installation, Materials And Labor Are The Sole Responsibility Of The Franchisee.

However, The Franchisor Will Provide Franchisee Written Specifications, Recommendations And Suggestions Concerning These Procedures At No Additional Charge. The Franchisor Will Also Assist Franchisee In Acquiring Necessary Drawings, Fixtures And Equipment, As Well As, Contractors And Sub-Contractors, If Necessary To Complete The Installation Of The River Ruler Entertainment And JTM Inc. Team Franchise Marketplace Facility.

Equipment And Supply Purchases

D. EQUIPMENT AND SUPPLY PURCHASES

The Franchisor Endeavors, But Is Not Obligated, To Make Available For Purchase Or Lease By Franchisee, Tools, Equipment, Uniforms, Office Supplies, Forms, Computers And Other Similar Materials Required For The Operation Of The Facilities.

In The Event That The Franchisee Purchases Same From The Franchisor, The Franchisor May Or Will Derive Profits And Revenues Therefrom. However, The Franchisor Does Not Presently Derive Any Profits, Rebates, Or Revenues On Account Of Purchases By Franchisee Made Directly From Third Party.

The Franchisor May Also Lease Or Sub-Lease Real Estate Or Equipment To The Franchisee, In Which Event, The Franchisor May Or Will Derive Income. In The Case Of A Sub-Lease, Profits Will Be Derived Based Upon The Difference Between The Franchisor's Rent Payments And Associated Costs Under The Master Lease And The Rent, Which Will Be Paid By The Franchisee, Under Its Sub-Lease With The Franchisor. In The Case Of The Lease, Lease Payments Made To The Franchisor By The Franchisee May Exceed Its Costs Of Acquiring And Developing The Property.

E. ASSIGNMENT - TRANSFER FEE

In The Event The Franchisee Wishes To Assign The Franchise Agreement (Which The Franchisor Must Approve And Which Gives Rise To A Right-Of-First-Refusal), The Franchisee Must Pay A Transfer Fee To The Franchisor Equal To (1) Two Thousand Five Hundred Dollars ($2,500) To Cover The Franchisor's Legal, Administrative, Accounting And Related Costs And Expenses In Connection With Any Such Assignment And (2) The Franchisee Agrees To Pay The Amount Of Any Sales Commission Paid By The Franchisor (Whether To Its Internal Sales Staff Or To An Outside Sales Agent) If The Franchisor Assisted In Finding The Assignee (Not To Exceed Five Percent (5%) Of The Sales Price Paid By The Assignee).

F. NO RENEWAL FEE

There Is No Renewal Fee. The Franchise Is Granted For A Fixed Term Of Ten (10) Years With The Right To Renew For The Term Stated In The Then-Current Franchise Agreement That Is Executed Upon Renewal Of The Initial Term And Any Renewal Term Thereof But In No Event Shall Any Renewal Term Be Less Than Ten (10) Years.

G. INSURANCE

Franchisee Is Required To Obtain Insurance Consistent With A Complete Business Insurance Package Consisting Of A General Liability Insurance Policy, Standard Fire And Extended Coverage Insurance With Vandalism And Malicious Mischief Endorsements, And Worker's Compensation Insurance And Consistent With A Package Presented To Franchisee By Franchisor. Franchisee Is Not Required To Place Said Insurance With The Broker Designated By Franchisor, But Franchisee Agrees To Obtain Insurance As Hereinafter Provided.

H. AUDIT

The Franchisor Has The Right From Time To Time And Without Prior Notice To The Franchisee, To Require An Audit Of A Franchisee's Books Of Account, Records, Cash Receipts, Service Orders, And Other Pertinent Data So That The Franchisor Can Ascertain Franchisee's Gross Sales. Franchisee Shall Cooperate Fully With Franchisor In Making The Inspection.

The Franchisor Shall Also Be Entitled, Once During Each Calendar Year And Once After Expiration Or Termination Of This Franchise, To An Independent Audit Of Franchisee's Books Of Account, Records, Cash, Receipts, Service Orders And Other Pertinent Data To Determine Franchisee's Gross Sales, By A Certified Public Accountant To Be Designated By The Franchisor. The Audit Shall Be Conducted During The Usual Business Hours At The Franchisee's Premise's.

If The Audit Shows That There Is A Deficiency In Payment Of Any Percentage Royalty, The Deficiency Shall Be Immediately Due And Payable. The Cost Of The Audit Shall Be Paid By Franchisor Unless The Audit Shows That The Franchisee Understated Gross Sales By More Than Two (2%), In Which Case Franchisee Shall Pay All Franchisor's Cost Of The Audit.

7 Franchisee's Projected Initial Investment

FRANCHISEE'S PROJECTED INITIAL INVESTMENT (Required To Fulfill Franchisee's Obligations Under The Franchise Agreement)

The Following Paragraphs Describe The Initial Investment Expenses Which Will Have To Be Done By The Franchisee As Their Initial Investment In A River Ruler Entertainment JTM Inc. Franchise. Estimates Of The Range Of These Expenses Are Provided In The Following Table. With The Exception Of The Initial Franchisee Fee, All The Sums Set Forth Herein Are ESTIMATES ONLY. Actual Costs May Vary For Many Reasons, Including, By Way Of Example, Prevailing Market Rentals, Tenant Improvements, Local Trade Practices And Labor Rates, And Local Governmental Restrictions And Regulations.

Working Capital Includes Estimated Expenses For Payroll And Opening Business Operating Expenses Including Government Licenses And Other Initial Operating Expenses Including But Not Limited To Travel And Living Expenses Incurred By The Franchisee's And Employees During Franchises Initial Training Program. The Franchisor Recommends That The Franchisee Provide For The Possibility That Its Expenses May Exceed Its Revenues And Maintain Sufficient Cash Reserves To Carry The Franchisee Through The Start Up And Development Stage Of The Business. The Exact Amount Of Each Such Reserves Will Vary From Operation To Operation And Cannot Be Meaningfully Estimated By The Franchisor. The Franchisee Should Consult With Their Accountant And Financial Advisors In Order To Develop A Business Plan For That Particular Operation.

FRANCHISEE'S PROJECTED INITIAL INVESTMENT

Item Of Projected Projected Payable To:

Expense Minimum Maximum

Franchise Fee

(non-refundable) $25,000 $25,000 Franchisor-Certified

Check Upon Execution

Of Franchise Agreement

Shop Equipment $48,700 $48,700 Franchisor

Signs $4,500 $5,500 Franchisor (Includes

1 Exterior Sign, 1 Interior

Logo, Banners-Applicable

To Local City Code

Requirements

Inventory To $8,500 $9,500 Franchisor (Includes

Commence Operation Initial Set-Up)

Office Supplies, $9,200 $9,500 Franchisor

Equipment And

Computer System

Sub Total $70,900 $72,900 Payable To Franchisor

Upon Execution Of Site

Lease

Initial Advertising $6,000 $6,000 Franchisor (Ninety Day

Grand Opening

Start-Up Program)

*Lease Of Business $6,000 $7,,500 Landlord (Upon Signing

Premises Of Lease- Depends Upon

Area Selected, Security And

First Month's Rent)

Real Property *See Footnote *See Footnote Seller

Deposits $2,500 $3,500 State & Local Agencies,

Utilities, Insurance

Company, Etc.

Working Capital $25,000 $25,000 Your Bank Account

(Needed To Commence

Business)

Sub Total $39,500 $42,000 Payable As Required

Grand Total $135,400 $139,900 Total Of Equipment,

Supplies, And Other

Start-Up Business

Expenses

Foot Note

FOOTNOTE: The Figures Stated Above Do Not Include Any Provision For Managerial Salaries Or Athlete Salaries Or Salary Caps Or Draws By The Franchisee And So This Is Based Upon The Assumption That The Franchisee Will Be The Full Time Manager Of The Business.

In Addition, Unless Otherwise Indicated, All Sums Are Payable In Lump Sum From The Personal Resources Of The Franchisee.

*THERE IS NO REQUIREMENT FOR INVESTMENT IN REAL ESTATE AND RENT VARIES IN LOCATION AND SIZE DEPENDING ON GENERAL MARKET CONDITIONS, INCLUDING LOCATION, SIZE AND LEASE TERMS, ETC. FRANCHISEE SHOULD CONTACT REAL ESTATE CONSULTANTS REGARDING REAL PROPERTY COSTS PARTICULARLY IF FRANCHISEE CONTEMPLATES PURCHASE OF REAL ESTATE SINCE FRANCHISOR IS UNABLE TO MAKE ANY ESTIMATE OF SUCH COSTS DUE TO CURRENT MARKET CONDITIONS. SECURITY DEPOSITS AND LEASEHOLD IMPROVEMENTS VARY WITH LOCATION, ECONOMIC CONDITIONS, LANDLORD CONTRIBUTIONS AND AVAILABILITY. BUSINESS DEPARTMENTS, FIRE DEPARTMENT, CITY, COUNTY AND STATE BUILDING DEPARTMENTS, LABOR DEPARTMENT, SALES TAXES AND OTHER SIMILAR GOVERNMENTAL AGENCY PERMITS AND LICENSES MAY BE REQUIRED WHICH MAY BE REQUIRED WHICH MAY RESULT IN UNFORESEEN COSTS THAT SHOULD BE INVESTIGATED BY FRANCHISEE OR ITS AGENT. NO ALLOWANCE HAS BEEN MADE FOR INFLATION OR FOR PRIOR RENT OR DEBT SERVICE OR INTEREST PAYMENTS ON BORROWED MONEY. FRANCHISOR BELIEVES THAT THERE ARE NO OTHER DIRECT OR INDIRECT PAYMENTS IN CONJUNCTION WITH THE PURCHASE OF THE FRANCHISE.

Obligations of Franchisee to Purchase Or Lease From Designated Sources

OBLIGATIONS OF FRANCHISEE TO PURCHASE OR LEASE FROM DESIGNATED SOURCES

The Franchisee is Not Required To Purchase Or Lease Anything From Franchisor Or Any Franchisor Designated Sources. However, Franchisor Makes Available To Franchisees For Purchase The Following: (1) Insurance Package; (2) Model Accounting System; (3) Printing And Stationary, (NOTE: Any Use Of The River Ruler Entertainment JTM Inc. Logo Or Trade Name, Requires Prior Written Approval Of The Franchisor); (4) Tethered Rapid Surf Lessons,Coaching Lessons, If Available, And (5) Equipment And Tools. If Such Purchases Are Made By Franchisees From Franchisor, The Franchisor May Derive Income As A Result Of Any Such Purchase Or Leases.

In Order To Maintain Uniformity Of Identification And Commonality Of Interest, Franchisees Are Required To Maintain A Reasonable Inventory Of Tethered Rapid Surf Clothing, Apparel And Equipment. The Franchisor Provides Each Franchisee With A List Of Approved Suppliers Of Products And Inventory As Stated Above. As Disclosed In Item 9 Herein, Suppliers Of Products And Inventory Are Subject To The Franchisor's Reasonable Approval. The The Franchisor's Approval Or Disapproval Is Based Upon The Franchisor's Desire To Provide The Public With Consistency In Quality Of Tethered Rapid Surf Clothing, Apparel And Equipment In All Locations. The Franchisor Does Not Require Franchisee To Lease Any Goods, Supplies Or Real Estate From Designated Third Party Sources. If The Franchisees Purchase Printing And Stationary, Tethered Rapid Surf Clothing, Apparel And Equipment Inventory And Other Equipment And Tools From The Franchisor, The Franchisor May Derive Income Based On Or As A Result Of Such Purchases. Since There Are No Required Purchases, There Is No Estimates As To The Magnitude Of Required Purchases In Relation To Purchases By Each Franchisee Of All Its Goods And Services.

Purchase Or Lease In Accordance With Specifications Or From Approved Suppliers

OBLIGATIONS OF FRANCHISEE TO PURCHASE OR LEASE IN ACCORDANCE WITH SPECIFICATIONS OR FROM APPROVED SUPPLIERS

Franchisee Shall Purchase And Install Only Premium, Rapid Boards And Set Ups Or Such Other Brands Or Products And Inventory As Designated By Franchisor From Time To Time. Franchisee May Purchase Rapid Boards And Set Ups From Franchisor, If Available, Or From Any Other Source Of Supply Approved By Franchisor.

In The Event The Franchisor Should Change The specification, It Would Be By Notice In Writing To All Franchisees.

The Franchisor Will Derive Income From The Sale Of Tethered Rapid Surfing Clothing And Apparel As Well As Equipment And Services Related Products And Services Purchased From Or Through Franchisor.

Financing Arrangements

FINANCING ARRANGEMENTS

The Franchisor Does No Customarily Offer, Either Directly Or Indirectly, Financing To Its Franchisees In Connection With The Establishment Or Operation Of The Franchise. Furthermore, The Franchisor Is Unable To Estimate Whether A Franchisee Will Be Able To Obtain Such Financing And, If So, Upon What Terms. Although Not Obligated To Do So By The Franchise Agreement, The Franchisor May Assist Franchisees In This Regard. In The Event That The Franchisor Or Any Employee, Agent Or Salesperson Finds Financing For A Franchisee, The Finder May Receive Income In The Form Of A Finder's Fee.

If Franchisee Is Purchasing An Existing Business From The Franchisor, Which Was Previously Operated By The Franchisor Or Another Franchisee, The Franchisee Will Typically Be Required To Execute A Purchase Agreement And/Or An Equipment Lease Or Sub-Lease. The Franchisor May Agree To Accept Payment Of Part Of The Purchase Price In Installments. The Franchisor May Also Derive Income From Such Transactions. The Precise Terms Of Any Such Financing Arrangement Will Vary From Location To Location And Will Be Determined By Negotiations Between The Franchisor And The Franchisee.

The Franchisor Has No Present Intent To Sell, Assign Or Discount To A Third Party, In Whole Or In Part, Any Notes, Contracts Or Other Instruments Which May Be Executed By The Franchisee And, Therefore, There Are No Waivers Of Defenses Or Similar Provisions In Any Note Nor Any Payments Received By Franchisor For The Placement Of Any Financing.

Other Supervision And Services

OBLIGATIONS OF THE FRANCHISOR; OTHER SUPERVISION AND SERVICES

A. The Franchisor's Offer Of Its Franchises Include Various Services, Assistance, Programs, Specifications, And Support Systems. The Obligations To Be Met By The Franchisor Prior To The Commencement Of Operations Of The Franchised Business Are As Follows:

1. Pursuant To The Franchise Agreement, The Franchisor Is Required To Supply The Franchisor's Operation Manual Which Specifies Standard Operational Procedures, Policies, Rules And Regulations Established By The Franchisor With Which All Franchisees Are Required To Comply.

2. Pursuant To The Franchise Agreement, The Franchisor May, From Time To Time, Without Obligation, Make Available For Purchase Or Lease By Franchise, Tools, Equipment, Uniforms, Office Supplies, Forms, Computer Hardware And/Or Software And Similar Items Required For Operation Of A River Ruler Entertainment JTM Inc. Facility. All Uses Of The River Ruler Entertainment Logo And/Or Trade Name Requires Prior Written Approval From The Franchisor.

3. Pursuant To The Franchise Agreement, The Franchisor Conducts An Initial Training Program, Which Is For Training The Franchisee And/Or Its General Manager, Without Charge To The Franchisee, With Training In The Management And Operation Of The System And The Business, Including Safety, Marketing, Bookkeeping, Inventory Control And Purchasing, And Customer And Employer-Employee Relations. The Initial Training Consists Of Between Five (5) And Ten (10) Business Days Of Approximately Six (6) Hours Per Day At Franchisor's Corporate Headquarters In Eugene, Oregon, Or At Such Place As May Be Designated By The Franchisor.

4. Pursuant To The Franchise Agreement, The Franchisor Shall Furnish Franchisee With Initial Advertising Banners And Copy And Assistance In Creating An Advertising Program. All Use Of The River Ruler Entertainment Logo And/Or Trade Name Requires Prior Approval From The Franchisor.

5. Pursuant To The Franchise Agreement, The Franchisor Will Make Available To The Franchisee A Complete Business Insurance Package Consisting Of A General Liability Insurance Policy, Standard Fire And Extended Coverage Insurance With Vandalism And Malicious Mischief Endorsements, And Worker's Compensation Insurance.

6. Pursuant To The Franchise Agreement, The Franchisor Shall Furnish The Franchisee A Model Accounting System To Be Used By The Franchisee In The Conduct Of Business.

7. Pursuant To The Franchise Agreement, The Franchisor Shall Furnish The Franchisee Sample Copies Of A Service Order, Business Card, Envelopes, Letter-Heads, Inventory Forms And Other Stationary Supplies, Which Franchisee Can Order From Franchisor At Prices Then In Effect. All Uses Of The River Ruler Entertainment Logo And/Or Trade Name Requires Prior Written Approval From The Franchisor.

8. Pursuant To The Franchise Agreement, Franchisor Will Provide Franchisee With A JTM Rapid Board Catalog From Which Franchisee Can Order Tethered Rapid Surfing Gear And Equipment For Regularly Using Them As Required By Franchisee In The Operation Of Its River Marketplace Service Center Franchise.

9. Pursuant To The Franchise Agreement, Franchisor Will Make Available For Purchase By Franchisee All Necessary Equipment And Gear Required By Franchisee In The Operation Of Its Service Center.

10. Pursuant To The Franchise Agreement, Franchisor Shall Furnish Consulting Assistance To Franchisee In Locating Suitable Improved Real Property For The Location Of Its Service Center And Will Furnish Consulting Services In Regard To Leasing Or Purchase Of Property, But Shall Not Be Required To Negotiate Withe The Property Owner On The Terms Of The Lease Or Purchase In Addition To Providing Written Specifications, Recommendations And Suggestions Regarding Leasehold Improvements And Fixture Implementation As Well As Assisting In Acquiring Necessary Drawings, Fixtures And Equipment.

B. Additionally, Although The Franchisor Is Not Bound To Do So By The Franchise Agreement, The Franchisor Offers General Advice And Assistance To The Franchisee In Making The Franchised Business Ready To Commence Operations And Maintaining Its Operation. Such Assistance May Include, For Example, The Rendering Of Advice Regarding The Selection Of Equipment And Accessories As Well As The Hiring Of Employees And May Make Available For Purchase Or Lease By Franchisee, Tools, Equipment, Uniforms, Office Supplies, Forms, Computers And Other Materials Required To Operate A Service Center.

C. The Obligations To Be Met By The Franchisor During The Operation Of The Franchised Business Are As Follows:

1. Pursuant To The Franchise Agreement, The Franchisor Shall Send One Of Its Specialists To Franchisee's Center For Three (3) Business Days Of Six (6) Hours Per Day To Assist Franchisee In Opening Its Center.

2. Pursuant To The Franchise Agreement, Franchisor Shall Have A Right To Require Franchisee And/Or Its Personnel, From Time To Time, To Attend Mandatory Supplementary Instruction Courses At Locations Selected Solely By The Franchisor.

3. Pursuant To The Franchise Agreement, The Franchisor Shall Furnish Management Counseling At Such Time And Location As Designated Solely By The Franchisor To Franchisee Upon Franchisee's Request Throughout The Term Of The Franchise.

4. Pursuant To The Franchise Agreement, The Franchisor Is Required To Administer An Advertising And Promotional Program Designed To Promote And Enhance The Image, Identity Or Patronage Value Of Franchised, Licensed, And Franchisor-Owned River Ruler Entertainment Service Centers.

D. Although Not Bound By The Franchise Agreement Or Related Agreements, The Franchisor Will Inspect And Critique The Franchises From Time To Time, At The Sole Discretion Of The Franchisor.

E. The Methods Used By The Franchisor To Assist The Franchisee In Selection Of The Location Of The Business Will Include Compiling Population Per Capita Of Each Location Option And River Access For Each Franchisee So Appointed.

F. The Franchisor Estimates The Typical Length Of Time Between The Execution Of The Franchise Agreement And The Commencement Of The Franchised Business Is Between Thirty (30) To Sixty (60) Days If Construction Of The Franchised Location Has Been Completed At The Time The Franchise Agreement Is Executed. Of Course, If No Site Has Been Selected At The Time The Franchisee Executes The Franchise Agreement, Further Time Must Be Anticipated For Site Location.

G. Prior To Franchisee's Actual Commencement Of Business Operations And After The Execution Of The Franchise Agreement, Franchisee Must Pursue And Complete The Franchisor's Training Program For New Franchisee's. This Initial Training Program Trains The Franchisee And/Or Its General Manager, Without Charge To The Franchisee, In The Management And Operation Of The System And The Business, Including Safety, Marketing, Bookkeeping, Inventory Control And Purchasing As Well As Customer And Employer-Employee Relations. Said Training Consists Of Between Five (5) And Ten (10) Business Days Of Six (6) Hours Per Day At Franchise's Headquarters In Eugene, Oregon, Or At Such Place As May Be Designated By The Franchisor. The Franchisee Is Responsible For All Travel, Lodging And Subsistence Expenses Incurred By Franchisee And Its General Manager While Attending Such Instruction Course And Such Training Shall Be Without Compensation To The Franchisee.

The Franchisor Also Sends One Of Its Specialists To The Franchisee's Center For Three (3) Business Days Of Six (6) Hours Per Day To Assist Franchisee In Opening Its Center. The Training Program Does Not Train Franchisee Or Its Personnel To become Athletes. Franchisee Must Satisfactorily Pursue And Complete Such Training To Franchisor's Sole, Subjective Satisfaction, Exercised In Good Faith. The Franchisee Is Trained By Various Members Of The Franchisor's Staff And By Managers Of River Ruler Entertainment Service Centers Owned By The Franchisor. The Franchisor's Instructors Will Have At Least Five (5) Years Of Experience In Such Training Procedures. Since The Training Program Is Mandatory, There Are No Percentage Figures For New Franchisee's That Enrolled In The Training Program During The Twelve (12) Months Immediately Preceding The Date Of The Offering Circular. As Previously Indicated, The Franchisor, At Its Discretion, Will Make Available Additional Training Programs From Time To Time.

Exclusive Area Or Territory

EXCLUSIVE AREA OR TERRITORY

Franchisor Will Not Appoint Any Other Franchisee Within The Same Territory While A Franchise Agreement Is In Effect Unless And Only To The Extent That River Access In Any Area Exceed Forty Thousand (40,000) Population For Each Franchisee So Appointed.

A. The Franchisor Will Not Grant A Franchise To Any Other Person, Form Or Corporation To Establish A River Ruler Entertainment Service Center In A Territory Previously Granted To Someone Else.

B. The Franchisor Has No Present Intention To Establish A Company-Owned Outlet Using The Franchisor's Trademarks Or Trade Names Within Any Exclusive Franchisee's Area.

C. The Franchisor Has Not Established But May Establish Other Franchises Or Company-Owned Outlets Doing Tethered Rapid Surfing Business Under A Different Trade Name Or Trademark In Other States Or Other Territories.

D. The Continuation Of The Franchisee's Area Or Territory Exclusivity Is Not Dependent Upon Achievement Of Any Sales Volume, Market Penetration Or Other Contingency And There Are No Circumstances Under Which The Franchisee's Written Consent.

Renewal, Termination, Repurchase, Modification, And Assignment

RENEWAL, TERMINATION, REPURCHASE, MODIFICATION, AND ASSIGNMENT OF THE FRANCHISE AGREEMENT AND RELATED INFORMATION

A. Term Of The Franchise

The Term Of The Franchise Agreement Is Typically Ten (10) Years From The Date The Franchised Business Opens To The Public, Subject To Earlier Termination In The Event That Franchisee's Lease, Sublease, Or Other Right To Occupy The Location Terminates Prior To The Expiration Of Said Ten (10) Year Period. The Franchise Agreement Is Also Subject To Termination In The Event That Franchisee Defaults In The Obligations Under Any Other Agreement Between Franchisor Or Its Parent Or Affiliated Companies And Franchisee, Including But Not Limited To Leases, Subleases And Equipment Leases. In The Event That Franchisee Subleases The Franchised Location From The Franchisor, The Initial Term Of The Franchise Agreement Will Be Consistent With The Initial Term Of The Franchisor's Master Lease For Such Location.