- Johnny and Daniel's dojo and their fragile alliance teeter on the brink of collapse when they agree to a winner takes all sensei showdown.
- Two pairs of senseis fight off. Johnny and Daniel hold a match to decide which one will lead their combined dojos. Meanwhile, Kreese questions Terry's more passive style of confrontation against Miyagi/Eagle Fans. Meanwhile, Robby and his group ambush Eli.—Gislef
- Terry Silver and John Kreese arrive the the Miyagi-Do dojo to talk to Daniel and Johnny. Silver is smooth talking and pleasant, but Daniel is furious. He demands Silver leave his property immediately and swears dire consequences otherwise. The students watch from inside, wondering why Daniel has such a strong reaction to the presence of this stranger. Silver gives up trying to make conversation, and instead offers to order Cobra Kai not to fight with Miyagi-Fang until the tournament, provided Daniel and Johnny agree to the same. Kreese takes the opportunity to reiterate their deal: If Cobra Kai wins the tournament, both Daniel and Johnny must never teach karate again. Daniel escorts Silver out while Kreese tries to drive a wedge between Johnny and Daniel by implying that Johnny and Eagle Fang are second to Daniel and Miyagi-Do. Johnny denies this, and Kreese and Silver leave. Silver says now that he's made his presence known, its time to get to work so the can "wipe the floor" with Daniel. Johnny demands to know what all that was about.
At the Cobra Kai dojo, the Cobras are planning to take bitter revenge on the Miyagi-Fangs, especially Hawk for betraying them. When Kreese and Silver return and announce there will be no fighting until the tournament, they decide to get creative.
Daniel and Johnny go drinking while Daniel explains what happened between him and Silver in 1985. Johnny wants to take Silver down right away, but Daniel warns him that Terry is always one step ahead, and extremely dangerous. He says that with Silver in the picture, he needs to take over training all of the students in Miyagi-Do, which of course Johnny objects to. Daniel insists that it's was best for Miguel and all of Johnny's students, and Johnny's jealousy of Daniel mentoring Miguel comes to the surface. To prove who's way is better once and for all, Johnny challenges Daniel to one last one-on-one fight, winner takes over training all of the students. Daniel accepts.
At school the next day, Demetri and Eli read up on Terry Silver, who Demetri was able to identify using a picture. Demetri shares a romantic moment with Yasmin, who tells Demetri that she has to go to Australia for her dad's wedding, and will not be able to go to prom with him, or support him in the tournament. While they talk, Eli and Moon meet up. It is clear they both still have feelings for eachother. After the girls leave, Demetri tells Eli that Moon broke up with her girlfriend, Pepper, encouraging him. Miguel and Sam find them and tell them about the "Lawrence-LaRusso Rematch" happening that night. The students are excited to see their senseis fight, but Amanda is upset. A hungover Daniel explains what happened the previous day. He says that the drinks got the best of them both and he isn't really going to fight Johnny. Johnny on the other hand is preparing for war. Daniel is about to call Johnny to call off the fight when Samantha comes home early from school. She argues with her dad about only training in Miyagi-Do, saying she needs both techniques for the tournament, and when he confronts her about acting aggressively against Tory, she tells him she will make her own decisions on which style to use.
Kreese is upset with how Terry is training the Cobras, and tells him they need to talk. After class, Robby and the other students come up with a plan to get payback against the Miyagi-Fangs.
While Johnny practices for the fight, Miguel tries to talk him out of it. He tells him that he doesn't want to stop learning Miyagi-Do, but that admission only fuels Johnny's desire to fight. After Sam says much the same thing to Daniel about Eagle Fang, he also begins practicing for the fight, saying for the sake of his daughter and other students, he must stop Johnny from teaching them.
Terry and Kreese go to dinner to discuss Silver's teaching of the Cobras. Kreese doesn't like that Terry won't let the students strike first at their enemies, but Silver argues that Kreese already did when he stole Johnny's son from him. Terry tells him if he is not careful, these old grudges will take down Cobra Kai yet again. Kreese insists he has everything under control, but Terry disagrees. He tells Kreese that to ensure their victory against Daniel this time, they must focus on preparing their students to win the tournament. Kreese agrees.
At the tattoo parlor, Hawk is waiting for the artist to arrive when his is jumped by Robby and the Cobra Kais. He fights them, but is overpowered and held down while Robby threatens him with a razor.
That night, at the dojo, Daniel and all of the students are waiting for the match. Johnny arrives and tries to call off the fight if Daniel will give up his stance on the training. Daniel refuses, and they both insist they know what is best for the students. The fight commences, with Sam and Miguel as the referees. They fight to an impasse, each with two points, and the final point comes to a tie as they both hit each other at the exact same time, confirmed by Chris, who was recording. While they watch the footage, Hawk wanders in, dejected. He takes his hood off to reveal his head, shaved of his mohawk by Cobra Kai. The students are horrified, and Johnny wants to go and fight Kreese and Silver immediately. Once again he and Daniel argue about what to do, Samantha taking Johnny's side and Miguel taking Daniel's. Johnny decides to take his students and go, dissolving the joint dojo once and for all.
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