You'll encounter a new enemy here: El Gado. He has a slide kick which can knock you down, and he also has a spin attack where he can leap a decent amount of distance across the screen. He also likes to use knives, and can throw them at you. There are plenty of other Mad Gears to fight in this stage.

Once you've moved on, you'll find anohter new enemy: Poison. Poison isn't as dangerous as El Gado, but don't just stand around unless you want to be on the receiving end of a flip kick. Move on to find Andore, who is the strongest enemy in the next group of Mad Gears you face. Once you can move on, you'll have some barrels rolled towards you. Destroy them to reveal some items.

Once the barrels have been busted, head right to encounter more Mad Gears. Defeat them all and you'll then meet Katana. This samurai is armed with two swords, and you'll engage in some trash talking with him before the fight begins. Haggar will tell him he's no match for him, as he's the slam master.

Katana has two attacks. He has a dash attack, where he'll charge towards you and swing his sword. Move out of his way to avoid being struck, then get him with a throw before he does anything else. Don't stand around in front of him, as his other attack has him swing his sword down at you, which does a lot of damage. Keep trying to grab him by moving into him from above or below, and use throws as much as possible.