Ostracised villain John Kreese attempts to gain revenge on Daniel and Miyagi, with the help of a Vietman War comrade, the wealthy owner of a toxic waste disposal business.

Mr. Kesuke Miyagi: If karate used defend honor, defend life, karate mean something. If karate used defend plastic metal trophy, karate no mean nothing.
Terry Silver: I owe you, man.
John Kreese: You don't owe me anything.
Terry Silver: Oh bullshit. I don't owe you anything? What about Vietnam, huh? How many times did you save my ass?
John Kreese: I don't know. I lost count.
Terry Silver: [in steam filled bathroom talking to John Kreese on phone] I'm telling you, we will be up and running.
John Kreese: [getting back massaged] What about the winners?
Terry Silver: Those two jerk offs are taking up all my time. But you just relax. For the boy he will compete. I'm telling you too, that he is going to be begging me to be his teacher. And what he's going to learn from me is pain in every part of his body. And fear in every part of his mind. But here's the kicker he's going to thank me for it later. Then I'm going to think he's invincible. But then when he steps out into the ring of the tournament, he's really going to find out what pain's all about.
[smiles a bit more evilly]
Terry Silver: Out in front of a thousand people. Anything else my friend you want me to do to him?
John Kreese: [looks at his hands] Yes. Make his knuckles bleed.
Terry Silver: [shocked/amazed] Hey! Johnny! I like that! I like that, my friend! I'm going to use that!
[Cobras are leaving Daniel/Jessica stranded on ropes]
Daniel Larusso: Hey!
Snake: Yes, sweetheart?
Daniel Larusso: Pull us up, man!
Mike Barnes: The stakes just went up. Give us the tree.
Jessica Andrews: No, Daniel, don't!
Daniel Larusso: [does anyway] All right, but just be careful.
Dennis: [laughing evilly] What are you going to do with it?
Snake: Replant it.
[raises it and acts like he's gonna thrust it in the canyon]
Snake: Down there!
Daniel Larusso: NO!
Jessica Andrews: NO!
Mike Barnes: [disgusted] Enough talk. Give me the tree!
[takes it]
Mike Barnes: Okay. Now you want it, right?
Daniel Larusso: Yes!
Jessica Andrews: Yes!
Mike Barnes: And you don't want me to replant down there?
Daniel Larusso: Yes.
Jessica Andrews: Yes.
Mike Barnes: Hey, Daniel.
[breaks the trunk of the tree]
Mike Barnes: Make a wish.
[goes off laughing very hard with Dennis and Snake]
Daniel Larusso: [looks at the injured tree very heart broken]
Daniel Larusso: You know, this is the 80s, Mr. Miyagi. You can't be so damn passive!
Margaret: [to Terry Silver whose taking bubble bath and smoking a cigar] And if you do not pay your bills, I will sue you for everything you are worth.
Terry Silver: [whatever type of voice] Yeah. Yeah. Look, I'll have the check out by five.
Margaret: And what about the court on the green?
Terry Silver: Do what I usually do. Bribe them.
Margaret: [astonished shockness] Mr. Silver.
Terry Silver: [watching Barnes fighting Daniel] I love it when he pounds him!
Snake: [entering shop] What's that smell?
Mike Barnes: I don't know.
[sniffs air]
Mike Barnes: It smells like yellow streak.
Daniel Larusso: Hey! Okay! This isn't funny anymore.
Snake: [real cocky] Oh, I know.
Mike Barnes: Sign the application yet?
Daniel Larusso: No.
Snake: [calls across the room] Hey Dennis! He didn't sign it yet.
Dennis: [puts something down he was looking at and shakes his head back and forth making tsking sounds. Then he karate chops some shoji windows]
[entering the Bonsai Shop]
Snake: Room for one more down there?
Terry Silver: [speaking to Mike Barnes] If you're looking to be a bad boy in L.A., Snake's the boy to be bad with. Right, Snake?
Snake: You know it.
Terry Silver: This is even funner than I anticipated
Daniel Larusso: Why don't you just take off.
Dennis: [shoves Daniel hard] You take off!
Daniel Larusso: I know you don't believe in fighting, but tournament karate isn't exactly fighting.
Mr. Kesuke Miyagi: Not exactly ping-pong, either.
Terry Silver: A man can't breathe, he can't fight.
[in Semi-Final fight, winning 2-0]
Mike Barnes: [sees Daniel and goes] You're next LaRusso! I own you.
[with that he finishes his opponent off]
Mike Barnes: [Jessica has just called him a slimeball for his improper advances] ... Oh, that's cute. Did your mother teach you that one?
Daniel Larusso: [practicing karate in garden when suddenly the gate busts open]
Mike Barnes: Hey shit head! Why'd you call the cops on me?
Daniel Larusso: Why'd you take the trees?
Mike Barnes: You have no proof.
Daniel Larusso: Did the tooth fairy leave the application?
[the two fight until Barnes has Daniel on the ground]
Mike Barnes: [steps on Daniel's throat] How'd you make it last year? Much less win?
Terry Silver: Let him up!
Mike Barnes: Who are you? His mother?
Terry Silver: Maybe.
[They fight until, Terry Silver has Mike by the hair]
Mike Barnes: [afraid he's going to fall, he leans a hand on Silver for balance]
Terry Silver: Don't touch me. Don't touch me!
Mike Barnes: [shaking lets go]
Terry Silver: Now, if I ever even see you on the same street with this kid I will seriously mess you up. Okay?
Mike Barnes: Ok...
Terry Silver: OKAY?
Mike Barnes: YES!
Terry Silver: [lets him go] Good!
[kicks his butt]
Terry Silver: Now get the hell out of here!
Mike Barnes: [zooms out of garden]
Terry Silver: [helping Daniel up] Who was that guy?
Daniel Larusso: The guy I'm going to be fighting.
Terry Silver: Oh. Well, here I brought your book.
Daniel Larusso: Thanks.
Terry Silver: Now let me give you a little lesson on how to deal with punks like that.
Terry Silver: All right, all right, I've heard enough. I've made up my mind. This slope, what's his name - Miyagi - and that punk kid - I'm gonna get them for what they did to you. They made you suffer, so I'm gonna make them suffer... and suffer and suffer and when I think they've suffered enough, then I start with the pain.
Terry Silver: [Mr. Silver is invited to say a few words before the final match of the All-Valley Tournament] Thank you, John. Thank you very much. I've always lived my life by the rule: "If you get, you give." For the last twenty years I've gotten from karate. I've gotten discipline, health, self-confidence, inner peace, everything that makes me what I am today. And today it's time for me to give back.
[audience cheers approvingly]
Terry Silver: It's my pleasure to announce my partnership with the greatest karate man I have ever known, Sensei John Kreese.
[more cheers]
Terry Silver: Together, we are about to open a chain of Cobra Kai dojos, where young people can come and learn the same values I've learned: honesty, compassion, and fair play. Thank you all for coming, enjoy the final match.
[Mr. Silver leaves to thunderous applause]
[repeated line]
Terry Silver: Perfect!
Daniel Larusso: Why do I have to do this with this thing?
Terry Silver: Because it's a part of the training. Because I'm teaching techniques that you don't have. Techniques you'll need to win the tournament. What, do you think you can rely on that crane crap?
[does a phoney impression of it]
Daniel Larusso: Well, I did pretty well with it last time.
Terry Silver: Hey, wake up and smell the coffee, Mr. Larusso. Last time you weren't fighting this.
[shows him a picture of Mike Barnes]
Daniel Larusso: If Mr. Miyagi doesn't sell this tree we're looking for, he loses his business. He's broke. His Social Security can barely cover the expenses on his rowboat. This tree is like money in the bank.
Jessica Andrews: Great. So now we're robbing a bank.
Mr. Kesuke Miyagi: Inside you same place you karate come from.
Daniel Larusso: My karate comes from you.
Mr. Kesuke Miyagi: Ah. Only root karate come from Miyagi. Just like bonsai choose own way grow because root strong you choose own way do karate same reason.
Daniel Larusso: I do it your way.
Mr. Kesuke Miyagi: Hai. One day you do own way.
Terry Silver: [to Mike Barnes before the match] Remember the game plan. First you win a point, then you lose a point. Keep the score at zero-zero. Pulverize him for the full three minutes. Then in sudden death you get the point, we win. I want him to experience pain. First he suffers.
John Kreese: Then he suffers some more.
Mr. Kesuke Miyagi: [Miyagi stares wistfully at a picture of him and Daniel together] Hope confusion end soon, Daniel-san. Miyagi heart empty without you.
Daniel Larusso: [tentatively] Mr. Miyagi?
[holds up injured tree]
Daniel Larusso: [a crash of thunder strikes outside]
Mr. Kesuke Miyagi: [seeing this drops broom in sad shock but calmly takes the tree and starts fixing it]
Daniel Larusso: [worried sad] Will it be okay?
Mr. Kesuke Miyagi: Depend if root's strong.
Mike Barnes: Sir, you said if I come down here and beat this LaRusso kid, I can have 25 percent ownership in you new dojos? Well, to perform my best, which I fully intend to do, I'm gonna need 50 percent.
Terry Silver: Whoa... I'm afraid I can't give you any more than 35!
Mike Barnes: I guess I'll be on my way, then... nice meeting everybody.
[turns to leave]
Terry Silver: Hey...
[Mike turns around]
Terry Silver: ... you fight as hard as you negotiate?
Mike Barnes: Harder.
Terry Silver: All right, you got it. 50 percent.
Mike Barnes: And I can get that in writing?
Terry Silver: By noon today.
Mike Barnes: Mr. Silver, you just bought yourself a champion.
Terry Silver: You think this is the end of it, old man? I'm gonna open Cobra Kai dojos all over this Valley. Hell, I might even teach for free! From now on, all that anyone will know about is Cobra Kai karate. John Kreese's karate. You won't even be a memory!
Daniel Larusso: Yes, he will. You won't.
[Kreese and Silver are laughing hysterically, as Daniel turns to Miyagi]
Daniel Larusso: NOW... will you train me?
Mr. Kesuke Miyagi: Hai. Now Miyagi train you.
Terry Silver: Now the real pain begins, Danny-boy.
[the Cobras are pulling Daniel/Jessica but stop about 95% of the way up so they can get the application]
Daniel Larusso: Hey! Pull us up!
Snake: First give us the application.
Daniel Larusso: No! I'll give it to you when we get up there.
Mike Barnes: [lets Jessica fall for 1/2 second. She's fallen 5 feet]
Daniel Larusso: All right! All right!
[gives it to Snake]
Daniel Larusso: Here.
Mike Barnes: Check it out.
Snake: [does] It's cool.
Mike Barnes: [points at Daniel lecturing] You back out of this and this will seem like a pretty nice dream compared to what we all will do to you... and her.
[after Terry Silver met Mike Barnes]
Terry Silver: So what do you think?
Margaret: Oh, he's obnoxious.
Terry Silver: [laughing] Yeah. He's perfect.
[relaxes into bubble bath]
Mike Barnes: Come on, get up! Get on that line! Get on that line, LaRusso! You're worthless! Your slope teacher's nothing! Get up, man! You're no champion! Get up! You suck, LaRusso! You suck, man! And your teacher's karate shit! You hear me! It's shit!
[Daniel looks over at Silver and Kreese]
Mike Barnes: You're a joke, LaRusso! Your karate's a joke and your teacher isn't worth shit! He's nothing! He's nothing! And you're nothing! I own you! I own you, LaRusso! Where's your little Jap teacher now, huh! He's a phony, man! He's a fake!
[Daniel looks over at Mr. Miyagi]
Mike Barnes: And he didn't teach you nothing! Your karate's shit! You hear me! Get up!
Mr. Kesuke Miyagi: [Terry's revenge plan is working and Miyagi is concerned about Daniel's change in personality] Daniel-san, why you doing this to yourself?
Daniel Larusso: Doing what?
Mr. Kesuke Miyagi: What you doing.
Daniel Larusso: Because Mr. Miyagi extreme situations require extreme measures. Okay?
Mr. Kesuke Miyagi: Oh, Daniel-san, that not sound like you talking.
Daniel Larusso: Well, it is me talking, all right?
[opens door to his room and confronts Miyagi face to face]
Daniel Larusso: Look, I'm sorry if you don't like it but I've got problems, okay, and if you're not going to be part of the solution, just don't give me a hard time about it! All right? Okay, you got it?
[both are very hurt and upset]
Terry Silver: [at the climax of Daniel's training] Visualize: this is not a bunch of sticks and pipes anymore; this is not some pathetic mugger who needs a couple of dollars so he can eat. No! This is a deadly, hungry wrecking machine who wants to detatch your head from the rest of your body and mount it over his fireplace!
[Daniel gashes his fist on the 2X4 with Mike Barnes' picture]
Terry Silver: It's blood. So what? Make believe it's HIS! This guy wants to BREAK you! HUMILIATE you! STOMP YOU INTO THE GROUND! NOW WHAT ARE YOU GOING TO DO ABOUT IT?
Daniel Larusso: ...NAIL HIM!
Terry Silver: SHOW ME! DO IT!
[Daniel breaks all three 2X4s]
Terry Silver: YES! You nailed him! You're ready!
Referee: You know the rules. Light contact to the body, *and I do mean light Barnes*.
Mr. Kesuke Miyagi: [Daniel is down on the mat at the All-Valley Karate Tournament, clutching his side... Miyagi rushes up] Daniel-san! Daniel-san!
Daniel Larusso: Mr. Miyagi, it's over! It's over! Forget about it!
Mr. Kesuke Miyagi: No! NO!
Daniel Larusso: I'm afraid! Let's just get out of here! I just wanna go home!
Mr. Kesuke Miyagi: No, get up! Get up! Must not! It's OK to lose to opponent. Must not lose to fear!
Daniel Larusso: Yeah, well, I'm afraid! I'm afraid of him, all right? What do you want me to do?
Mr. Kesuke Miyagi: HAI! You stay focused. Daniel-san, you best karate still inside you. Now time let out!
Terry Silver: Look at this. Ten years ago, nuclear was the preferred waste. You could dump it anywhere! Now everybody's a detective. I'm lucky if I make one deal a YEAR without being indicted!
Terry Silver: There you are.
Daniel Larusso: Yeah. I had to do some thinking.
Terry Silver: And?
Daniel Larusso: I decided not to fight in the tournament this year. I figured that's the least of respect I owe you. Just to let you know.
Terry Silver: You owe me alot more than that, Danny-boy.
Daniel Larusso: Oh, I can have the payment for the lessons in a couple of weeks. I just need to get the money.
Terry Silver: No money. You're getting in that ring and fighting the tournament. That will be how you pay for the lessons.
Daniel Larusso: Wait. Mr. Silver, you can't make me do anything I don't want to do.
Terry Silver: [laughs] Danny, Danny. Since the moment I met you, I've been making you do things you don't want to do.
Daniel Larusso: [confused] What do you mean?
Terry Silver: What do I mean?
[calls in office]
Terry Silver: Shall we show him what I mean?
Mike Barnes: [steps out] I'm what he's talking about $hit head.
Terry Silver: We have a little agenda here, Daniel.
[so excited spits out]
Terry Silver: Either you fight one day or you fight for the rest of your life.
[even more hyped up]
Terry Silver: So what's it going to be Danny boy?
Daniel Larusso: It's going to be that I'm not going to fight.
Terry Silver: You don't have to. You can just stand there and let him kick your@$$ for the whole 3 minutes.
Mike Barnes: [attacks Daniel] You're doing this to yourself.
[after Mike Barnes beats Daniel up]
Terry Silver: Do you wanna see some more?
John Kreese: I wanna see a lot more.
Terry Silver: [to Mike] Bring him back.
Terry Silver: [to Kreese] You see his face? See the trail? I think he peed in his pants.
Terry Silver: A man can't stand, he can't fight.
Terry Silver: A man can't see, he can't fight.