

Zumichito tells our three heroes the story of one of his epic adventures. At the time he was a young ninja and a Katana student stole the Jade Dragon from him, a priceless treasure that he was guarding. Just as he'd managed to get the treasure back off the thief - who had taken refuge on a boat on Lake Akayama - a huge monster of a fish attacked them. Zumi had no choice but to abandon the Dragon so as to save his adversary from drowning. Since that day, the treasure has lain at the bottom of the lake.
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!