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After a whole presentation of Tony Stark 's past, Colonel James Rhodes is given the honor of present the Apogee award to Tony at Ceasar's Palace. However, Obadiah Stane , Tony's business partner, signals to Rhodes that Tony is not present and receives the award on behalf of Tony. Shortly after the ceremony, Rhodes finds Tony gambling in the casinos and gives him the award but gets very angry at Tony for not being present at the ceremony. Tony leaves the hotel, Christine Everhart , a reporter, tries to interview Tony but gets swayed by Tony's bodyguard Happy Hogan , though Tony toys with her and ends up spending the night together.
The next morning, Tony works on his cars along with his A.I. computer JARVIS but gets interrupted by his assistant Pepper Potts who tells him that he is late for a trip to Afghanistan. Tony arrives 3 hours late which irritated Rhodes but shortly after, the two bestfriends got drunk at the airplane.
In Afghanistan, Tony presents his new Jericho Missile to the US military, demonstrating its capabilities. After the presentation, he opts not to ride with Rhodes and rides on another convoy. On their way back to the airport, Tony's convoy is attacked by terrorists. Most of his escorts were killed but Tony sneaks away from the ambush and finds himself taking cover on a huge rock. He tries to use his phone to call for help but he sees one of his company's missiles lands beside him and explodes. The blasts causes him to lose consciousness and embeds several pieces of shrapnel in his chest, one fragment dangerously clost to his heart.
He wakes up sometime later at a cave where he is held prisoner and sees an electromagnet hooked up to a car battery attached to his chest. He is greeted by a fellow captive named Ho Yinsen and tells him that the electromagnet keeps a small shrapnel from entering his heart and informs him that they are in captivity by the terrorist organization known as the Ten Rings . They are then approached by the Ten Rings' leader, Raza...
In a post-credits scene, a mysterious figure looks at the video screens of the cave where Stark and Yinsen is held. His hand is then seen with weird looking rings.
Episode 2 - Heroes are Built
- In the opening scene where Tony Stark's past life is being presented, his parents were mentioned that they had died in a car accident.
- Tony Stark's abduction was ordered by Obadiah Stane as revealed in "Man in Iron".
- First appearance of Tony Stark, James Rhodes, Obadiah Stane, Happy Hogan, Pepper Potts, Christine Everheart, Ho Yinsen and Raza.
- First appearance of JARVIS (voice).
- First appearance of the terrorist organization, the Ten Rings.